I hear all this talk about buying fixing and flipping with no money out of pocket. How the heck are you supposed to find a house lower than 65% -75% After repair Value, and still have money to fix it up. I’ve been watching the shows, reading books, listening to audio books, am I missing something? are there more loans involved? Or do I really have to find someone that is GIVING the house away? Are REOs truely good deals?
It takes a LOT of looking. I’d only use hard money if absolutely necessary though. It’s a costly way to go with big points and high rates.
My tip is to look for houses with no plumbing. It’s increasing common for people to strip it out of the home before foreclosure since copper is expensive now. That will eliminate most buyers from the equation and isn’t that expensive to replace. At least then you know the cost going in vs. being surprised with plumbing problems after purchase.
No money out of your pocket usually means you are using some one elses.I have paid cash for reo’s, I have used invester cash for purchasing good deals and used their money for repairs.
It is all in the team work, meaning people who believe in your skills. When you surround your self with people who believe in your abilities and you prove them right …and they have cash and see you making money then they want to be involved.
The one thing I find to be true is…find a really good deal and the money will find you. I believe we as investers spend most of our time trying to find deals. If you can do this( find good deal) the rest is the easy part.
If you find a really good deal, apply your exit strategy, tie it up with a contract that matches the exit, find some one to fulfill the exit strategy then repeat. Hope this helps ,Darin