September 17th, 2013
In prior posts, we talked about the basics of flipping properties and some of the pro’s and con’s. Today we’ll review the important points and offer tips on how to look for properties that could be good to flip.
Also from Investopedia:
The first step is to learn what the market value of the neighborhood is so you know how much you should pay and how much you should sell for. Then you need to look for motivated sellers.
Look for real estate investment clubs in your area. You’ll get to meet people who have been prospecting and monitoring home values for years. Here you may find some buyers of your flipped properties so take the time to get to know them, and help them get to know you.
Attend foreclosure auctions to get a feel for what happens and how much houses sell for relative to their worth. Again, look for investors. Let them know you will be “rehabbing” homes that could then become good investments.
Set up a spreadsheet or a file system where you track the people you’ve met and how frequently they call you, or you call them. You’ll quickly find your best customers and lead generators.
You can also use these contacts to build your team since you will need a good appraiser and title company.
There are as many methods as there are people. Some ideas are:
Once you find homes, you can use the county tax records to locate the owner and send them a letter.
Ask if they are interested in selling and get as many details about the house as possible. Some things you need to find out are:
Before you buy, remember your five exit strategies:
And one last piece of advice. When the home is finished and you’re about to put it on the market, hire a professional stager to pull things together.
Next week, we’ll look at home staging in more detail.