I am looking for my second flip…Need advise as to how to find a rehab…My first flip was sold to me by a relative who wanted to get rid of their property fast. I did very well on it and now I have cash to buy a second but I am having trouble finding a good deal…Any suggestions? Should I advertise, ‘I buy homes’ in the paper or bill boards, or should I hire an agent to find me one? What about forclosure sales? I do have cash or is that too risky? Any ideas would be greatly appriecated…thanks
Don’t use “I/ We buy houses”. That garbage has been played over and over. It’s like going on a street with 30 identical McDonald’s on each side, there is no reason to pick one over the other. If you put “I buy homes” in a newspaper, your ad will be lost with the 20 other identical ads. Newspaper ads (like all ads) work well if they stand out from the crowd.
Finding distressed properties will start with what level of rehab your prepared to take on. If your looking for a quick cosmetic job, agents have tons of them that they can’t push in slow markets. Foreclosures are typically a good place to start for all types of properties, as all auctions are. A billboard will run you $3-5k a month depending on where it is. (Billboards are probably one of the highest yielding RE investments if you are interested in “developing” them.)
If you want a really bad (good) property to totally renovate. The property will most likely not be for sale and the owner doesn’t care that they pay taxes every year on a vacant property. These you will find via word of mouth or by personally locating them. Word of mouth read bird dogs and ads. If you recruit solid bird dogs then you will have an army devoted to finding you deals.
so you have:
Birddogs- everyone you meet
Ads- everything you can think of
Agents
Auctions
Personally locating