Is Flipping Houses / Wholesaling Houses “Risky”???

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I’ve read a number of postings on a number of different forums advising that “flipping homes” is risky. I think that it’s a bunch of bunk. Here’s my two cents on the matter…I’ve said it once, and I’ve said it hundreds of times:

IN MY OPINION, FLIPPING PROPERTY IS THE BEST WAY FOR A BRAND NEW PERSON TO START INVESTING IN REAL ESTATE BAR NONE. IT REQUIRES LITTLE TO NO CASH, ABSOLUTELY NO CREDIT, AND CARRIES THE LEAST AMOUNT OF RISK.

Why do I say that???

Well, let’s first describe EXACTLY what kind of “Flipping/Wholesaling” I’m talking about.

Flipping, or Wholesaling houses is the process of finding a deal (a property for sale, advertised or not advertised, for a phenomenal price), putting that deal under contract with little to no earnest money (that ties up the buyer, but enables you a “way out” if necessary), and selling that deal to someone looking for a deal. That’s it.

Now, you don’t buy the house yourself, fix it up, or do anything to it other than find a buyer. So you’re not dropping a bunch of cash into it hoping that it will sell! That is risk! That’s NOT the way to start investing if you don’t know what you’re doing!

On my first Wholesale deal, I got the house under contract for $20,000 CASH, to close in 30 days. My wife FREAKED OUT when I showed her the contract. She seriously flipped…”WE DON’T HAVE $20,000!!!!” Then I showed her that I had a way to get out of the contract if I needed to, and that the seller did not. I then marketed the property, and screwed up. I ended up figuring out that I probably did offer too much for it, and I spent a LOT more time on selling it than I should have…about 8 hours total to be exact. And, what were the results of all of my screwups???

In 30 days, I had sold the property for $25,000 and had a check for myself for $5,000. As soon as I closed, I went to the bank, cashed the check, and brought home Fifty $100 Bills! Tracy flipped out and decided that this real estate stuff did have something to it!

Now, of course that’s the “short version”, but the main thing is that I don’t see the “risk” in that. Am I Missing Something? Or are you? It’s up to you to decide if you want to let someone else tell you that this real estate “thing” is too risky and you want to use that as an excuse to prevent you from reaching your true potential!

Talk soon,

Jason B. Simpson
www.StreetCopMillionaire.com