Flipping Houses

We couldn't resisting putting this article on our website with a title like that who would? But jokes and catchy titles aside, flipping houses in today's enviroment should be approached with some caution. It's very important to educate yourself with a real estate flipping course (such as the one we offer for free at the top of this page) before you jump in:

Flipping and Fixing Houses for High Return on Investment Capital
Investors love to make a high return on their money. That's why so many millionaires invest in real estate. You can leverage your money using other peoples' money when you finance real estate. Many real estate investors make $5,000 to...

In the 21st century, everyone knows the word "gay" refers to people that are homosexual, but back in the 1950s, the meaning was contested. The alternate definition was "full of joy and mirth."

Can you imagine the confusion? Tell one group of people that you're "gay" and they'll assume you're happy. Tell another group and they'll reach for a cross and a can of gasoline.

Right now, "flipping houses" creates the same effect. It has two definitions:

1) The process of *legally*

Flip that house style real estate investing
I love those TV rehabbing shows like Flip That House. On the show people buy a house needing to be seriously updated and repaired. Usually the kitchen is heavily upgraded with new cabinets, cutting edge appliances, new countertops and more....

selling a property for a fast profit, sometimes using little or none of your own money

2) The process of *illegally* selling property for an artificially inflated value, often involving a group of criminal appraisers, loan officers, and investors

Do you see the similarity with "gay?" One definition is upbeat and accepted, while the other is (currently) unacceptable and downright scary. The majority of the world understands "flipping" as an illegal activity, where a small minority

The Real Way To Make Money Flipping Real Estate
Would You Like to Make Money Flipping Real Estate? Many beginning real estate investors get started by flipping real estate to make quick cash. If you would like to make more money by investing in real estate, you need to know a few essentials....

are trying to redefine it as a legitimate real estate investment strategy.

The reason: good old Uncle Sam. When the government talks about flipping, they use the second definition. According to the Department of Housing and Urban Development, flipping occurs when:

A recently acquired property is resold for a considerable profit with an artificially inflated value

Being closely related to the government, attorneys, accountants, and the press are hanging on to that

Fix And Flip - A Real Estate Formula
Making money with a "fix and flip" property is a great way to make money in real estate. However, it isn't about repairing drywall and planting flowers. It's all about how you do the numbers. People often buy and sell a fixer-upper without a...

definition. So, the next time you visit them, don't be surprised if they "flip out" (pun intended) at your strategy.

The exact opposite is true with real estate investors. You can buy a house and then "flip" it to another investor for a small but fast profit, allowing you to reinvest your money and repeat the process. You can also assign contracts for a fee (another form of flipping), allowing another buyer to close on the property in your place.

Which definition will win? If

Flipping Real Estate: Calculating Costs
If you've been in the real estate investing business, or more specifically been flipping real estate, for more than a few days, you've inevitably gotten an email that reads something like this: "Investor's Dream. This property will go...

"flipping houses" follows the etymology of "gay," the more acceptable definition will come out ahead. Who knows? Maybe they'll make a movie about it.

About the author:

Jon Morrow is the owner of Real Estate... Answered, a web site that answers dozens of questions about flipping houses for free. He also manages over $20 million of real estate investments, focusing on luxury homes and multimillion dollar transactions.