Rehabbing And Wholesaling: Two Ways On How To Flip Real Estate

Property investment buying has always been a popular option among groups and individual who want to earn big monetary figures. However, not a lot of people are that familiar with the investing options that come with this concept. Nevertheless, there are some exceptional people who were able to crack the secret behind the ins and outs of buying and selling properties. These people are known as investors who flip real estate for a living.

The Two Methods of Flipping Properties

In real estate investing, there are two ways on how to flip real estate. These methods are called flipping and wholesaling. Wholesaling is a term that refers to the purchase of contracts to sell and lease properties to other buyers. This term is used interchangeably with the word flipping. However, seasoned investors in the industry know that there is another method used in flipping properties. This method is called rehabbing. Rehabbing refers to the method of buying undervalued properties, renovating them and then reselling the houses at higher prices.

Their Common Denominators

There are a number of similarities between these two flipping methods. First, the target properties of these two methods are properties priced below their market value. Another similarity that these methods have is that all the deals happen in a short amount of time.

The Things That Set Them Apart

Despite the similarities of the two methods, each method differs from the other. Investors who use wholesaling as a method to flip real estate only purchase the contracts to resell a property, not the property itself. Therefore, the investor who wholesales the property only serves as a middleman between the seller and purchaser and gets an assignment fee once a property is sold. Meanwhile, individuals and groups who are into rehabbing properties buy the property, fix up its damages, and resell it at a higher price tag.

Tips in Determining the Best Flipping Method

People who want to flip real estate can either choose between the two methods or use both of them in their investing business. However, they have to remember several things. Investors must be able to have enough funding for these properties especially when rehabbing homes. They should also be able to take care of all the paperwork needed in order to negotiate and close deals in a legal manner. Lastly, real estate investors should be able to find properties that are suitable for either of the methods that were mentioned. Rehablist.com is an online property listing website that caters to the needs of both wholesalers and rehabbers.

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