What are the best strategies for this general market that we are in now?
If someone has little cash or credit needs cash or cashflow, then what would be the best strategies for today’s market?
Thanks, Peter
If you are new, wholesaling is your best bet. Learn your market and then buy a rental or 2 at the RIGHT PRICE. Flipping still works fine, but there isnt any room for error. You have to know your area very well and pay attention to the DOM.
I thought flipping WAS wholesale :help
In general, wholesaling and flipping are NOT the same thing. People who wholesale have no intention of doing anything to a property other than finding a buyer for it. Flippers generally purchase a property with the intention of fixing it up and selling it for a SUBSTANTIALLY larger amount than what they bought it for. See the difference?
Jake is right but you will hear them interchanged in context at times. A true flipper buyer, fixes and resells and a true wholesaler never buys the property (unless double closing). People that dont know what pure wholesaling is will say things like “oh, so you flipped it” or “did you guys end up flipping that one”. Not sure if that helps
what works best depends on your local market. There is no best strategy for the national market. All real estate is local.
Everybody seems to be trying to define flipping as one special activity. As someone that was introduced to the term when I started to invest in 1955 it meant only one thing, owning or controlling a property for a short or brief period of time before reselling it. It applied to all activities such as wholesaling, pre-habbing, rehabbing, etc. It only referred to flipping your ownership, even though we had a tendency to say we flipped a property.
what’s working right now?
mortgage reduction
mortgage negotiation
short sale consultation
debt counseling
Those are a few ways you can make money in this market.
Try and associate yourself with a business that is fed by the declining
housing market. This will position you best to take advantage of any
potential deals.
Be careful you do not violate any laws as they are more stringent now
and also be aware of any ‘conflict of interest’ you might have with your
employer if you choose to work for someone.
In my market you buy HUD’s in decent shape for pennies… then lease/option them or even resell on land contract.
It’s great cash flow.
Even though there’s a HUGE inventory of Bank Owned (REO’s), HUD’s, and Auctions, Landlords still have the upper hand because so many people have been laid off they’re credit is shot. No way they can buy a house the traditional route and they certainly don’t have the cash to buy a bank owned. They must rent or buy with seller financing. This is why its great for us investors now.
If one buys REO’s or HUDs to rent, RTO or seller financing to an end-buyer, what are the best kinds of underlining low-cost financing should one use to buy and hold the property (if one has little money or credit) while one rents, RTO or seller finances to the end-buyer? Thanks.
That is why I don’t like terms like flipping. I call it buy fix-up and sell, buy fix-up and rent, etc. There is no doubt what you do no matter where somebody is from
bluemoon,
Well said.I hate that term when people pin it to me.It sounds like it sells real fast or that’s what I seen on TV and it look so fun.Oh,if they only had a clue.It’s like when I started my business and people said “you can take off whenever you want and no boss”.I’d say I never get a vacation,because if I do for let’s say a week.It would set me back two months.Not complaining,just not the cakewalk alot of people think it is.