“Flipping” is defined as buying a property and then reselling it, usually at a profit. These actions are perfectly legal business investments.

Flipping is not illegal, nor is it unethical. Unfortunately this belief of unscrupulous behavior is often emphasized through media stories showing deceptive inflation of market property values, false documents, or fraud. These actions are clearly illegal and are not used by true investors or real estate flippers, but rather, by con men.

To succeed at flipping a property, it is important to find the right property. You need to look for a home that needs updates, and they are often listed as “fixer-uppers”. Or, look for a buyer that needs a quick sale, such as a seller who has already bought another home or is facing foreclosure. Obtain leads on these properties by talking to your friends, relatives, businesses, bankers or real estate agents and watching the real estate ads. Often, just driving around neighborhoods will lead you to many possibilities - look for the homes for sale by the owners, or with signs stating the price has been reduced for quick sale.

Public records can be a valuable resource when it comes to finding a great investment property. The records can help you find people who are in need of a quick sale or are in danger or foreclosure. People in these situations are often willing to sell for less than the property is worth. This allows them out of their mortgage and gives you an opportunity to maximize your profits at the time of resale. A win-win situation!

It is possible to enter into a ‘double-escrow’ deal without even putting your name on the title. This type of deal is for buyers who want to remain living at the property and involves taking a very long escrow (more than 90 days) and reselling the property so that both deals close at the same time. This allows the buyer to take advantage of the rising values of property. However, when participating in this kind of deal you should always be on top of your financing, and be prepared for a quick move.

In order to ‘flip’ a property you must enter into an agreement to purchase a property, then sell the contract to another investor beore close of escrow. Financing is not necessary and you may make anywhere between $500 to $5000.

There is a steep and honest learning curve when it comes to successfully flipping a real estate property. Not only is it important to have a good eye for potential buyers and properties that can sell; often an investor will need to learn about property repair, and even perform some of these services (such as plumbing and carpentry) themselves.

Flipping houses in a short period of time can be a profitable endeavor for the right person. It takes a calm collective personality that can think fast and take risks. Negotiating with contractors and lenders requires skill and personality. It is a good idea to have an attorney and accountant you can consult unless you are knowledgeable in those fields yourself.