OK, I somewhat understand where to look for forclosures or distressed properties (Banks, Realtors, MLS, etc.). On the other side of Flipping, what’s the best way to find the buyers for your properties. Should you go through a realtor and have to pay there fees or place an ad in the newspaper and pay for the ad, is there a better way to find out who wants your property whether it’s someone who plans on living there or an investor. Also how quickly can you get the property Flipped from the time that you actually buy the property without penalties. Thanks for any replies, Jim
Jim,
Find a helpful & motivated mortgage broker, realtor, and title company. Do not shop for the lowest price, but rather for the best service. Give each of them all your business. Refer other people to them. They will reward you with service. List the house with your realtor and pay the commission. Spend your time buying the next house.
How long you have to hold a property depends on how you finance it and how your buyer finances his purchase. The quickest flip I’ve seen: I bought a house from the winner at the end of a foreclosure auction. His flip time was about 15 minutes. However, you should plan on holding any purchase 6-12 months. If you can support a house that long, you’ll not get in trouble and have to sell at a sacrifice. If you hold 12 months, the Federal tax bite is a lot less, increasing your profit considerably.
Good luck,
Ray