Top 5 Questions New Real Estate Paper Flippers Ask

Ronda Sharp
Sep 16
2 min read

Getting into paper flipping houses can feel both exciting and confusing. Beginners often have the same burning questions about how it works, what risks are involved, and how much money they can make.

To save you time, I’ve pulled together the top 5 questions new paper flippers ask—along with clear answers to help you move forward with confidence.

1. What exactly is paper flipping?

Paper flipping is the process of putting a property under contract (purchase agreement) and then assigning that contract (assignment contract) to another buyer—usually a cash investor—for a fee. You’re not fixing up the property or buying it yourself. You’re essentially selling the rights to the contract, not the property itself.

2. Do I need a lot of money to get started?

No. One of the biggest advantages of paper flipping houses is that it requires very little upfront capital. In most cases, you’ll only need:

Earnest money (sometimes as low as $10–$100). Although earnest money is not required in all states, you should always check your local state laws regarding wholesaling rules and regulations.
Marketing costs (postcards, ads, or skip tracing)

You don’t need mortgage approval or large down payments like a traditional buyer because you are not taking actual ownership of the property.

3. How much money can I make from one deal?

It depends on the deal, but most paper flippers make anywhere from $2,500 to $20,000 and up per assignment. Larger deals in hot markets can bring even more. The key is locking in contracts at the right price so that all parties walk away happy...your buyer, seller, and YOU!

4. What are the biggest risks in paper flipping?

While paper flipping is lower risk than traditional flipping, it’s not risk-free. The main risks include:

Contract mistakes (using the wrong forms or missing key clauses)
Title issues (liens, disputes, or unpaid taxes)
Failing to find a buyer before the contract expires

These risks can be minimized by working with experienced title companies, using solid contracts, and building a strong buyers list.

5. Do I need a real estate license to paper flip?

In most cases, no—you don’t need a real estate license to paper flip. However, laws vary by state, and some areas may have restrictions. It’s important to consult with a local real estate attorney or check your state’s regulations to stay compliant.

Final Thoughts

New wholesalers often feel overwhelmed, but once you understand the basics, paper flipping houses becomes much clearer. The process is simple: find motivated sellers, secure contracts, and connect with eager buyers. With practice and the right guidance, you can build a profitable business without huge startup costs.

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