How to make money flipping real estate contracts?

How to make money flipping real estate contracts?


Flipping real estate contracts can be a lucrative venture for those looking to make money in the real estate market. This strategy involves finding distressed properties, securing them under contract, and then assigning or selling the contract to another investor for a profit. In this article, we will explore the steps and strategies involved in successfully flipping real estate contracts.

Research and Analysis

Market Research: Before diving into flipping real estate contracts, it is essential to conduct thorough market research. This involves analyzing local real estate trends, identifying target areas, and understanding the demand for distressed properties. By staying informed about the market conditions, you can make informed decisions and increase your chances of success.

Networking: Building a strong network of real estate professionals, including real estate agents, wholesalers, and other investors, is crucial for finding potential deals. Attend local real estate networking events, join online forums and social media groups, and establish relationships with key players in the industry. Networking can provide valuable leads and opportunities for flipping real estate contracts.

Finding Distressed Properties

Direct Marketing: One effective method for finding distressed properties is through direct marketing. This involves sending out targeted mailers, postcards, or letters to homeowners facing foreclosure or those who have expressed an interest in selling their properties. Direct marketing can help you find off-market deals and negotiate favorable contract terms.

Working with Wholesalers: Wholesalers are real estate professionals who specialize in finding distressed properties and assigning the contracts to investors. Building relationships with wholesalers can provide a consistent source of potential deals. Stay in touch with wholesalers in your area, communicate your investment criteria, and be ready to act quickly when they present a potential contract assignment.

Contract Negotiation and Due Diligence

Contract Terms: When negotiating a real estate contract, it is crucial to ensure favorable terms that allow for flexibility and profit potential. Include contingencies that protect your interests, such as inspection and financing contingencies. Additionally, negotiate a reasonable purchase price that allows for a sufficient profit margin when assigning the contract.

Due Diligence: Before finalizing a contract, conduct thorough due diligence on the property. This includes inspecting the property, reviewing any liens or encumbrances, and assessing the repair costs. By conducting proper due diligence, you can accurately estimate the property’s value and potential profit.

Assigning or Selling the Contract

Marketing the Contract: Once you have a signed contract, it’s time to market it to potential buyers. Utilize various marketing channels such as online platforms, social media, and your network of real estate professionals. Highlight the property’s potential, the favorable contract terms, and the profit potential to attract interested investors.

Assigning the Contract: Assigning the contract involves transferring your rights and obligations to another investor in exchange for an assignment fee. This fee is typically a percentage of the contract’s value and represents your profit. Work with a real estate attorney to ensure a smooth and legally compliant assignment process.


Flipping real estate contracts can be a profitable venture if approached with the right strategies and due diligence. By conducting thorough market research, building a strong network, finding distressed properties, negotiating favorable contracts, and effectively marketing and assigning the contracts, you can make money flipping real estate contracts. Remember to stay informed, adapt to market conditions, and always conduct proper due diligence to maximize your chances of success.


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