Real Estate Flipping

When most people think of real estate flipping they think of the classic fixer-upper home. You know, something that just needs paint and carpet and then can be sold for a $30,000 profit. Those exist here and there, of course, but there are a lot of investors looking for them.

If you want to avoid the competition, there are other types of real estate that can be turned for a profit. Here are three examples.

Raw Land Real Estate Flipping

The first profit I ever made in real estate was a piece of land. It was less than three acres and I bought it, cleaned it up and sold it for 30% more just two weeks later. The key to doing this is not in buying the land far below the market value (although that would help). Instead try to add value or perceived value in some way (I cleaned the brush and outlined a driveway using a shovel and rake). In addition, you can always add value by selling it on easy terms.

Flipping By Changing Use

Sometimes a property is just not being used the best way for the area it is in. A house in a business district, for example, might be made into offices and sold for more. A piece of land with an old mobile home may be worth more with the mobile home removed. Look for opportunities to change a piece of real estate to a higher use.

Buy Sell Rent

If you have a business that needs a good place to operate from, but you can't afford to tie up your capital in real estate, you can do similar to what many big-box retailers do. They build what they need and then sell it and lease it back. In your case, consider buying a building that already exists and is under-priced. Use an LLC that is not the same one you use for your primary business. Then sign a lease for a fair rent, and sell the building for more than you paid. The new owner should be able to get financing based on the income from the lease that's already in place.

There are undoubtedly other methods for real estate flipping. These three are to get you thinking.

Tips For Flipping A House | Real Estate Flipping