I want to buy a house, maybe at around $50,000 and flip it and sell it for more. I would work with a realtor to find one that would make a good candidate for flipping… Then, I would take the profits and buy another house that is more expensive that is also a good candidate for flipping… and work my way up and up until I have a really nice house…
In addition, I can rent the extra rooms out along the way…
What do you think of this plan?
Obviously, one bad investment tanks the whole idea… but I hope I can manage risk by doing research beforehand…
It sounds like a good plan, I would bypass the Realtor though, they usually only deal with retail priced homes and if you talk about creative financing you will get a reply of that cant be done or it’s illegal, or a blank deer in the headlights look. Then you will get the sales pitch of it’s better to be pre qualified yada yada bla bla.
You can find fixers that are not advertised, usually vacant with back taxes owed and maybe city code violations, these are good candidates for profit. Of course they will probably be in lower income areas. But I’ve found these houses sell fast.
These types of sellers can be very motivated and willing to do seller financing and even wait for 3-6 months till it’s rehabbed and sold to get their money.
It will take some marketing to find these prospects, I use bandit signs, recruiting bird dogs, handing out door knob hangers, direct mail. You shud also consider wholesaling these houses, much easier, faster, no risk and quick profits.
I like your plan, and if your focused and motivated enough & with some education, you will do it.
It sounds like a lot of work to find those houses without a realtor.
I’ll use Craigslist and see what I get. I don’t have time to drive around town all day.
I have a realtor that flips houses himself. Can’t I take his word for it and do my own research as to what it should sell for after repairs?
Try finding leads thru some classifieds
I got leads from a realtor and looked at one of them. This realtor is also an experienced flipper.
It struck me as significant that he said curb appeal is almost as important as structural integrity of the house.
Haha,yea, it is hard work. If your not willing to work hard to become wealthy and successful, then do what 98% of people do. Get a 9-5.
I’ve done the Realtor thing and made a good chunk of change on one property. But most times, the Realtor investors keeps the good ones for themselves or convinces the sellers they are going to get top dollar for a junk house that needs a bazillion dollars in repairs. If it is on the MLS for a good price the feeding frenzy from other investors will leave you asking yourself, what the heck happened? Advertised for 42K and sells for 62K It needs 40K in work and the ARV is 92K Who is buying these deals? How can they make any money?
If you believe everything a Realtor or homeowners or buyers tell you, I got a bridge I’ll sell ya.
I try hard not to be too negative on Realtors, and I’m still looking for a few good ones.
What should my bandit signs and door hangers say?
You can email me and I’ll give you samples of successful marketing samples. My email is on my profile I believe.