|New Book Reveals Pros and Cons of Flipping Houses|
Tax Issues Explained
If you are a serious real estate investor and want to learn the pros and cons of quick sale property profits, there is no better book than "Flipping Properties, Second Edition," by William Bronchick, Esq., and Robert Dahlstrom. These experienced investors reveal what they have learned over 15 years of real estate "quick flip" investing by purchasing at a bargain price, cosmetically fixing up property, and flipping for a fast profit.
Three key principles the authors explain, which every real estate buyer can profit from using, are (1) talk only with motivated sellers, (2) persistence pays, and (3) treat real estate as a business. In addition, they emphasize the pros and cons of becoming a full-time property "flipper" or keeping your "day job" and occasionally flipping properties.
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The authors even offer advice about taking real estate seminars. "Be leery of both very cheap and very expensive seminars," they write. "If the seminar is free, it's because the promoter wants to sell you something?If the event is more than $1,000 per day, you should also be concerned," the authors warn.
As with the earlier edition of this excellent book, the second edition offers a detailed survey of the business of flipping houses. The book highlights what to look for, how to find properties offering fast resale profit opportunities in virtually any local market, and specific steps to take to earn fast flip resale profits.
However, the book is not without a major flaw. Although Bronchick and Dahlstrom have many years of experience flipping properties, throughout the book there is not one personal example of what they did right or wrong applying the flip techniques they explain. Without specific examples, this book is weaker than it should be.
The book's best chapter explains "The concept of flipping properties." It explains the three possible roles a reader might play. One is the "scout" who finds potential flipper properties and refers them to a local investor who pays a referral fee when a successful purchase results.
Another role a "flipper" might play is the "dealer" who locates deals and actually contracts to buy a property but then assigns that purchase contract to an ultimate buyer, such as a "retailer."
The retailer flipper buys the property from a dealer, or as the result of a scout's effort, changes the property from an ugly duckling into a beautiful swan, and then resells for a substantial profit.
When I reviewed the first edition of this book, it was the pioneer in the field of explaining the benefits of flipping properties. Since then, there have been many other books written about flipping properties for profit.
Unfortunately, the second edition of this book has not kept up with the competition. Although it remains an excellent book, it needs current real-life examples of property flip profits in today's market place.
Chapter topics include: "The Concept of Flipping Properties"; "The Mechanics of Real Estate Transactions"; "Proven Ways to Find the Deals"; "The Art of Negotiating the Deal"; "Putting it in Writing"; "Finding Money to Buy the Properties"; "The Closing Process"; "Rehabs--The Big Bucks"; "Presenting Your Masterpiece"; "Liability Issues"; "Tax Issues"; and "Starting and Succeeding in the Flipping Business."
If you want to earn fast real estate profits, reading this book is a great place to start. It explains virtually all the important topics, especially the tax aspects of fast-flip properties. However, the book cries out for real-life examples to show the theories actually work. On my scale of one to 10, this book rates a solid 10.
"Flipping Properties, Second Edition," byWilliam Bronchick, Esq. and Robert Dahlstrom (Kaplan Publishing, Chicago), 2006, $18.95, 202 pages; available in stock or by special order at local bookstores, public libraries, and www.Amazon.com.
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Copyright 2006 Inman News