First Flip thread - Woot Woot!

YES!! (I think…)

OK, the market is tough here - There are a lot of bank owned homes here in CA (people aren’t even bidding at foreclosure sales hardly at all any more). I’ve just got the bank to come down 21% from its initial asking price (about 35% below market - but very little is moving so that could be an open question).

Market Comps are in $415-440 Range - Initial Listing by Bank at $400. Contract at $315K.

Going to close on Tuesday next week.
Needs a new yard, roof is old, new fixtures and kitchen - estimating $20-25K.

Here goes nothing…

  • Jeff

How is your 1st venture going? Did you purchase the property? I got an approval from the bank for 155K on a home that is worth about 300K. I would like to flip it but I’m not sure what type of agreement or how to draft one to get my money. Any Ideas?

I don’t know if your talking about flipping or assigning but to do an assignment you can use a standard p/a and add “Your name and or Assignees” to the signature box. Then use an assignment form to pass it along to another investor. Be sure to have an escape clause in your initial contract.

For the first guy, be weary of pulling old comps in a slumping market you can quickly fool yourself into believing a home has value when in reality it has none. The best indicator in a slumping market of what the market value of a home is to pull comps no more than 3 months old and then do comparables with current inventory, because when you go to flip that is what you will be up against.