Flipping new construction contracts

With the rise of new construction popping up again the days of flipping contracts or assigning contracts is a quick easy way to make a few thousand dollars.

Back in the day, 2002-2006 I would make a pretty good ROI by getting in on the first phase of a new development in the mid to high-end price range ($600K-1.2)

Yeah there was a deposit up to 3% of the purchase price but it was held in an interest bearing trust account so it was secure and earning some return already. Yes you have to qualify but getting a proof of funds to show all cash in an account is pretty easy to do if you know the right people. Even you hard money-lender will back this sort of pre-qual showing verification of funds on your behalf as long as you throw them a few bucks on the back-end. No, it's not fraud, the intent is to buy the home with financing but if the private money lenders are in the trust or LLC as partners with the funds to close then all is good.

I would just put on the purchase contract "and or assigns" next to my name on the contract which was usually a trust or a LLC that I set up to buy properties.

So what I would do is put down a deposit on a single story 4 bed 3.5 bath with a decent lot and a 2-3 car garage (the most sought after) or if we had to go 2 story we would pick the most open and airy floor plan.

Once we were secured and in escrow I know there were people behind me in line who wanted that house and didn't want to wait for the next release and the price increase usually around $20-30K

I would offer them my contract on that house anywhere from $5-20K+ my deposit with the stipulation that I get to represent them as their agent on the purchase which gave me another 2-5% commission.

It's a short-term investment that can NET you huge fast returns! Why take the risk of buying a home, borrowing money to fix them up and then hope a buyer likes what you did for a price that you can make a decent return.

Flipping contracts is low risk and fairly fast. You can always hold your position as long as you can to maximize your return by why get greedy, get in and out and move on to the next one!

I am in the process of doing this on a few developments right now and plan to NET $30-50K each.

Happy Hunting!!!