Typical Real Estate Transaction Process

Fix & Flip Investment Cycle

1. Find a property – There are many ways to find property to fix and flip. Most investors use a wholesale investment company, like The Real Estate Professors to find the property for them. However, investors can also find properties from Realtors, other investors, referrals from friends or neighbors and investment clubs to name a few.
2. Purchase the property – Once a property has been found and the Buyer and Seller have come to terms on the buy/sale of the property then escrow is opened up with a title company. (Or closing attorney depending on which state the property is located in.) The title company or closing attorney act as a neutral third party and are responsible to collect all the appropriate documents and money from the appropriate property and then disburse according to the terms agreed upon.
3. Hire a contractor – Now that the investor owns the property the time has come to rehabilitate the property. This is usually the most frustrating part because it can be difficult to find a good contractor. Once you do though hang on to them as they are worth their weight in gold.
4. Begin rehabilitation – Set out a head of time exactly what you expect to have done to the property. Be careful not to over rehab a property for the area. We’ve seen rehabs done that are gorgeous but there was no way that the investor would get their money back because the area did not warrant that nice of a rehab job. You want the property to be the nicest looking property in the neighborhood but only one step above the rest and that’s all.
5. Sell the property – Once the rehabilitation is complete it’s time to sell. We recommend you use all available means to sell the property. This includes your Realtor, the internet or whatever means you can to get the property sold.

That’s all there is too it, except cash your check and were guessing you can figure that out on your own. This basic outline shows how the typical fix and flip property process is handled. If you would like to know the nuts and bolts of how this process works from beginning to end then check out our Investor’s Fix & Flip Kit which goes into tremendous detail.

Purchase and Rental Cycle

1. Find a property – There are many ways to find property to buy and hold. Most investors use a wholesale investment company, like The Real Estate Professors to find the property for them. However, investors can also find properties from Realtors, other investors, referrals from friends or neighbors and investment clubs to name a few
2. Purchase the property – Once a property has been found and the Buyer and Seller have come to terms on the buy/sale of the property then escrow is opened up with a title company. (Or closing attorney depending on which state the property is located in.) The title company or closing attorney act as a neutral third party and are responsible to collect all the appropriate documents and money from the appropriate property and then disburse according to the terms agreed upon.
3. Hire a property manager – Now that you own the property the time has come to hire a property manager to manage the property for you.  We recommend you look on www.IREM.com which stands for Institute of Real Estate Management.  In order for a manager to be a Certified Property Manager (CPM) they had had to attend classes on everything from tenant application to forecasting rent projections.  They are the best of the best.
4. Manage the manager – Once you have hired a property manager your job is not over. You will still need to manage the manager to make sure they are doing everything they should to maximize your rental income and minimize your expenses.
5. Do it again – You now own an investment property in which you should be doing almost no work. That’s what the property manager’s job is. This gives you the freedom to go buy another investment property to continue to build your wealth.