5 Steps to Get Started in Paper Flipping Houses

What is Paper Flipping?

Paper flipping is a real estate investing strategy where you get a property under contract and then assign that contract to a buyer for a fee—without ever owning the home. It's also called wholesaling, and it’s one of the fastest ways to get started in real estate with low risk and little upfront money.

So What Are the 5 Steps to Get Started in

Paper Flipping Houses?

Step 1: Learn the Basics

Understand how paper flipping works. Your job is to find motivated sellers, get the property under contract at a good price, and assign the contract to a cash buyer.

• Tip💡: Study local wholesaling laws, common contract terms, and assignment procedures. Register now for our upcoming classes. Also, register for a FREE coaching call when the form appears on screen.

Step 2: Build a Buyers List

Before you lock up a deal, you’ll need investors ready to buy. Start building a cash buyers list by networking at REI meetups, online forums, and Facebook groups.

• Tip💡: Use tools like PropStream or BatchLeads to locate investor buyers.

  
  

Step 3: Find Motivated Sellers

Use lead generation strategies like driving for dollars, cold calling, direct mail, or online ads to find property owners willing to sell at a discount.

• Tip🔍: Focus on pre-foreclosures, inherited properties, absentee owners, or distressed homes.

  
  

Step 4: Get the Property Under Contract

Once you find a potential deal, negotiate and get a signed purchase agreement with the seller. This contract is what you'll later assign to an end buyer (typically an investor).

• Tip📝: Make sure your contract has an "assignable clause" and an inspection contingency for flexibility.

  
  

Step 5: Assign the Contract & Get Paid

Match the deal with one of your buyers. Use an assignment agreement to transfer the contract to them, then get paid your assignment fee at closing.

• Tip💵: Make sure that your assignment fee is included in the assignment agreement - This is where you cash in!

Final Thoughts

Paper flipping houses is a great way to build capital in real estate without owning property. Master these 5 steps, stay consistent, and you’ll be on your way to closing your first wholesale deal in no time!

The information in this article are of the experience and opinion of the author. Due diligence should always be done before investing in real estate.