New investor

[kar526]

I'm am trying to find ways to make money with real estate without taking possession of the properties. Please help if you have advice for getting started.

[kenw]

Hello New Investor,
I think what your saying is you want to get properties under contract with you with stipulation you can sell them to another party at closing. There are several excellent books on how to do this however in todays market it might not be the best strategy.
Good Luck
Kathy W.

[starke]

Hello New Investor,
You are talking about assigning (or flipping) contracts. That is a more advanced real estate subject.

As a new investor, you might find it a little easier to start by picking up the game owning a few properties.

One thing to remember when flipping contracts is... you have to be able to close. If there is not enough meat on the bone, finding an investor to spin a property off to can be tough.

Many of your flippers have deeper pockets, can play some kick butt games, and have a good RE attorney for when they 'inevitable' get someone angry.

It's a great way to make money... I'm just not a big believer in the overnight success story...

Good luck.

[sam12]

Yup, you need to learn some Flipping Properties techniques.
I would also advice you to contact an experienced RE Investor during the transaction.
111.
Good Luck

[kar526]

Thanks for the feedback.

[timmy33]

Hey welcome to the game!

Flipping isn't too tough, depending on where you are investing. If you know how to buy the house (ie-get a good price) you should have no trouble wholesaling it.

You can consider either of the following:

Use an option to purchase the house. When you do this, you have the right, but not the obligation to buy a house until a set date (when the option expires.) If you find out you negotiated a bad deal, you don't have to close. You can get away with using $10 as option consideration most of the time, so you'd only be out the ten bucks.

Use escape clauses (contingencies) in your purcase contract. When you buy, bury a clause in the contract that states that you have the right to cancel the transaction any time prior to close without recourse to the buyer (you).

It would probably be easier to stick with the options though.

Either way, good luck!

Tim