How to Flip Homes
Flipping Homes Easy
So you want to make some extra money flipping homes? Well there are 3 elements you need to have set in place other wise you'll be wasting your time
- Negotiating Skills
- Motivated Sellers
- Motivated Buyers
- Attorney (who is a real estate Investor)
Don't skip this vital team player/ element they will save your hide if you ever make a mistake. You need them for your contracts they can also play a partner in your business as they are investors too!
MAKE SURE YOU ATTORNEY IS AN ACTIVE INVESTOR
I'll keep this short and simple this is where the magic is. You never ever want to pay too much for a house! Always try to use a little cash as possible (upfront). While I don't have any specific strategies for you I do suggest you pick up a for real estate books on negotiating and attend some local investor training sessions on it.
Finding Motivated Buyers
Join your local real estate club... think about it most 80% of the people there will be real estate investors always looking for a good deal! You'll also run into some
- Mortgage Brokers
- Real Estate Agents
You get my point... some of the people on that list might be looking for a good deal as well OR they might even know of someone that could use your services. It's always good to network!
Put an ad in the paper stating you are willing to accept buyers or renters that have bad or good credit and a low down payment. This ad always gets my phone ringing! There are plenty of people out there with bad credit that want a home and have decent income to pay a monthly due. I also like to put that I accept section 8 tenants. Now i know some people sneer at them but think about it... It's guaranteed INCOME thank you MR. GOV! These people are less likely to mess up your rental because they don't want to lose their gov assistance and you'll never have to worry about late payments EVER!
Here is a really good one that' has worked for me I learned this one at my local real estate club. Call the bandit signs offering to buy homes! Chances are these are investors or people looking to sweep up more property! I'm sure some of you have thought about that one but if you haven't well... there is your golden nugget for the day!
Finding Motivated Sellers
Grab your Sunday paper and circle all ads that have "FOR RENT" Or "FSBO" you can even use older Sunday papers for this. No I know you're probably wondering "why old Sunday papers? Well chances are those sellers or landlords still may have vacancies they need to fill so the more papers you can find the better.
This will cost a little bit of money but you need to have dedicated line to this business for capturing voice messages. You will also need to order or make some bandit signs. Bandit signs are those signs you see on the corner that say "We Buy Homes" Or We Buy Junk Cars". You want yours to say something like " I'll Buy Your House NOW In Any Condition xxx-xxx-xxxx" or "Tired of Paying 2 Mortgages? Let Us Help" of course you must include your phone number
Put an ad in the paper letting people know you will buy their home or help them buy a new home with C or D credit ( you can build a buyers list with Method 3 as well). This is one of my favorite because you'll always get some window shoppers. What do I mean by "window shoppers" ... I'm talking about the people that look through the newspaper at homes wishing they had enough money to buy! So when they see your ad claiming that you help those with bad credit and little money down... THEY BECOME MOTIVATED!
Ps You always want to grow your list of Buyers ALWAYS it's easier to sell when you have a list of motivated buyers. You can even pre sale a home before you have it under contract!