Recently a reporter for a major publication asked for some comments on how to flip homes with no money down. While at first glance this might seem like an impossible task, it can and is being done – more often than one might think!
Ways To Flip Homes With No Money Down
In today’s super-hot seller’s market where prices increase almost monthly, it isn’t that difficult to flip homes with no money down.
This technique is also known as a back-to-back or double escrow, where the buyer of a home turns around and sells it immediately after he (or she) closes escrow on their purchase.
Steps To Flip Homes With Money Down
Here’s a first-hand report on the three steps to take when you flip homes with no money.
#1. Make an offer, get it accepted, and open escrow on the home. Put down as little earnest money as possible and have the close of escrow as long as possible.
#2. Market the home for sale while you have it tied up in escrow. In a hot housing market prices will increase over a very short period of time.
#3. Accept a purchase contract from a buyer of the home that you are waiting to close on, insisting that the close of escrow for your buyer be immediately following the close of escrow for the home you are buying.
Benefits Of Flipping A Home With No Money
Other than tying up your small earnest money deposit for 60 or 90 days, even longer if possible, you’ve invested nothing else in the deal.
You haven’t spent the time or money applying for a mortgage because you don’t need one. There’s also been nothing spent on inspections or other due diligence items.
Plus if you’re a licensed real estate agent, you’re probably receiving a commission for buying the home that you’re flipping, increasing your potential profit even more!