Scandinavian Sparks Blog

There are other definitions that people talk about for flipping. Some talk about it as actually purchasing a property, then quickly rehabbing it to resell it. This is something you can do but there are also a lot of other financial risks that can be a problem, particularly in flat or lingering locations.

When we talk about flipping, we are talking about controlling properties at a discount and then assigning (or flipping) them to another buyer for a fast profit. When we talk about real estate wholesaling, we are basically referring to finding properties inexpensively and assigning them inexpensively to another individual or rehabber; thus the term wholesale. For more clarification on jargon, when you transfer a house to another person, this just means you are providing the right to them to purchase the property directly from the seller.

Once you get a home under contract, you will have control. Then you can assign it to another investor at full price or for a flat fee so they can close on it. They take your place in the contract, then close on the house, handle fixing it up and either keep it or sell it to an end buyer for full price. A real estate system like the one created by Matthew Sorensen is a great no issue option to create quick profits using little or no credit or other financing techniques.

Since you have neither of these limitations you can also do as a many as you want making real estate wholesaling a great cash flow system especially once you have a reliable system working for your team!