I can almost summarize most of the real estate investment methods that are used today into two different methods. One is a wholesale flip. It’s very popular right now, and it works, if you want to jump through all the hoops involved. People make money selling wholesale properties. The other is retail using a Subject to or rehabilitation method.

Herein lies the problem, with selling properties using these older methods of wholesale, subject to, short sale, or rehab. One, obviously, everyone and their mothers are teaching these methods. So what there is is a lot of competition for the houses that are on the market with which you can really work.

To have a very attractive property that a rehabber/wholesaler can flip, you must purchase a property for 50 cents on the dollar or less. They must have space to fix it, invest money and make a profit on top of that. That forces you, the investor, to locate very few houses that come up each month that meet the criteria, and on top of that you have a ton of competition looking for the same deal.

That’s why when you go into wholesale… right off the bat, the first thing you learn is you have to look at basically pre-foreclosure properties, and they have to cost about 50 cents on the dollar to so it works. So that’s the biggest problem with wholesale flipping. Again, there is good money to be had if you get a system like TV advertising or other expensive promotional means to spot these deals before other investors find them. For me, that’s a lot of work.

Now, I have taught foreclosures. I have taught wholesale flipping. I’ve taught all of these methods over the years, but when you compare it to something where you can go out with any salesperson who’s even halfway motivated and still make the same amount you would make, actually a lot more than you will at retail. major: $20,000, $30,000, $40,000, well, there is no comparison.

Using a method called Reverse Buying will allow you to buy homes for up to 95% of full market value and still earn thousands of dollars. The Reverse Purchase method also eliminates the “Title Seasoning” problem that prevents a simultaneous closing with regular lenders. It is not a subject-to type transaction, so there is no Expiration Clause violation at the time of sale. You simply earn the full difference between what the owner will sell you the house for and what you will resell at full market value. You take advantage of the new buyer’s loan to make the purchase without doing a simultaneous closing.

To make a Reverse Purchase, simply create a transaction with three contracts involved. The first contract creates the agreement for you to buy the house at a lower price. You then promote the home to your list of buyers and complete a second contract of sale between you and the ultimate buyer once you’ve found a pre-qualified buyer. Now cancel the first two contracts in exchange for a purchase from the seller. This is the profit paid to you at closing. The seller and the buyer now enter into the third contract. This contract is submitted along with your request for payment to the title company. Just wait for your check.

Dealing with nice houses in nice areas with nice owners is a much better way to turn houses around. And there’s a much better way to flip houses than wholesale, pin down, or rehab.