Everything that I discuss in this article is 100% legal, although you should consult a real estate attorney there in your home state before you begin any real estate investing program.

How does one flip houses for quick cash?

First I’d like to state that before you can begin flipping contracts you first must understand that despite whatever anyone tells you every real estate contract is assignable. That also means that even if the contract doesn’t expressly state its assignability, its still assignable.

What does it mean to assign a contract? Hey, I’m glad you asked. Assigning real estate contracts basically deals with another person taking your place as the buyer on the contract or in the deal. Again, it is perfectly legal and has been done probably more times than just about anything in the residential and or commercial real estate fields.

The mechanics of a deal would work as follows:

You the investor locate a property, for example the seller is in financial distress and needs to sell quickly. However, you for the sake of this example don’t have the cash to purchase the property and so you locate a wholesale buyer of your own who you will “sell" to. Side note here, the reason I place the word “sell" in quotes in the previous sentence is because I don’t want you to get confused, thinking, well how can I sell a piece of real estate I don’t own. What I’m referring to when I say locate a buyer that you will sell to, is assigning your interest in the sales’ contract to.

Okay, let’s continue with our example. Let’s say the owner is asking $115K for their home and we’ve determined that the home is worth $175K, which means there is a very nice amount of equity in this deal, $60K to be exact. We offer to purchase the property from the seller for their asking price, making sure everything is in writing of course and then you locate your buyer.

Here’s were the fun begins. Once you have your buyer in place you’ve provided them with all of your research on the property that you’ve compiled and they agree that the property is worth what you say its worth and as long as everything meets to their liking you will have earned your fee.

My fee? Yes your fee. Don’t worry, I’ll explain, in fact its pretty simple in our example because there is such a good cushion between what the seller wants for their property and what its worth you can reasonably charge your buyer between $2,000 and $5,000 as an assignment fee for the benefit of bringing them such a lucrative deal.

Now every deal won’t be as “cut and dry" as our example. What I mean is this. That property was in relatively good condition and probably could have commanded pretty close to market value but again, the seller wanted out and was willing to take less than what the property was worth. In other cases, you’ll come across properties that will need more work which will require you to “get your hands dirty", well not literally, unless you have the cash, expertise and the time to do the work required.

In that case, you’ll receive your profit after the property is fully rehabbed and then placed on the market to be sold. And for all others who locate properties in need of repair who don’t have the cash, expertise or the inclination to embark on the project, well all you have to do is locate a rehab/buyer that you will sell to for a tidy little profit.

Flipping houses for quick cash is the ideal way for anyone just starting out in real estate investing who lack the cash and or credit to begin investing. With the proper understanding of flipping contracts anyone, even you can do really well whether you’re new to the game or a seasoned professional.