FIND ONE YOU CAN FLIP AND MAKE A QUICK $100K?

Wow! (Let us know where it is, before you buy it that is! Maybe we can work a deal together…!)

Fact is Folks, those $100k net profit properties are FEW and FAR between. If you want to net $10k, take your pick of foreclosures and of private sellers that just reduced their price by $10,000. These are a dime a dozen, and a little research will give you a bountiful list of property to choose from. If you are looking however, for the ones that will make your pocket a little heavier, in the $20-$30k net range, you’ll need to do some more serious research, a good amount of driving around on short notice, and BE PREPARED TO BUY IT!

While foreclosures in general are initially listed under fair market value, it’s not often that you’ll see them $40k to $50k below when it goes on the market.

If these properties show up, you better believe they are gone in a matter of days if not hours!

Professional investors leave their contact information with real estate companies, and wait for the phone call to come in that a HOT one has just been listed. They are in the car making a drive by immediately, and on the phone at the same time having a pre-approval letter faxed to their agent. This is called the “Flip” property, where there is enough room between potential appraised value and potential purchase price to make a great profit by immediately re-selling. If you want to start competing with those “professional” investors, you need to be ready to go when one like this comes up!

Without knowing every single neighborhood in your area, how will you know which property can be flipped? YOU NEED A CALCULATOR, a COMPUTER and a REALTOR! Your Realtor may be able to get information that you can’t, your computer will give you access to public tax records that will show what property in that area is selling for, and your calculator…well, you can figure the rest!

Developing a relationship with a Realtor can not be stressed enough. Find the right one for you, and stay in touch. Even if you plan to buy just one house, and you are willing to wait for it, let your Realtor know that you are still there, still interested. Call or email once a month, because just like your offer that you want seen loud and clear, you want your Realtor to think of you when the good one comes up. Be clear about what you want; No one can find the right house for you if you can’t explain what you want yourself, and giving generic search parameters to your agent is unfair to you and them. Stating that you “want a good deal, don’t care what it is, just as long as it’s a good deal” is NOT going to help anyone find property for you. So think about what you want, and stick to it!

If your intention is to purchase and re-sell in under 12 months, check with an accountant in your area about state and federal tax laws regarding capital gains. This will be an expense that needs to be included when working your numbers to determine if the property works for you. Before you buy it, make a decision about whether you will sell it yourself, or use a Realtor to market for you. The Real Estate fee needs to be calculated for a true net profit, and this may change the maximum dollar you can offer on the property for your net to stay where you want it to be.

Buy/Flipping has a greater risk associated with it than purchasing a long-term rental, but don’t be afraid of it. If you have good solid information, and you believe and trust the facts about the house, neighborhood etc., you stand to make a nice tidy profit when it’s all done.

This type of investment is not for the weak or the financially unstable.

One last VERY IMPORTANT FACT ABOUT BUY/FLIPS…If you have an accepted offer on a foreclosure, or any property, you CANNOT legally, morally or ethically market or sell it until you have closed on it. You do not own the property until the Deed has been recorded, which means that if you advertise it, show it, take a deposit it on, you are misrepresenting yourself as the owner of the house. There are too many RIGHT ways to buy/flip, don’t put yourself at risk by doing it the wrong way. If you have worked all the numbers, feel really confident about the purchase, do it the right way, make your offer high and strong with a quick 2 week close (You know you can do this because you are pre-approved and your Lender is ready to go!). Those extra 3 weeks that it takes for you to close legally won’t make a dent big enough in your net profit to risk trying to sell it before it closes. Stop and think…what happens if your buyer finds out that the property they just bought from you is listed with a Real Estate office for $35k less than they paid to you, and they could make a back-up offer which has a very real opportunity of being accepted if the first accepted offer fails to close? It’s just not worth it! If someone tells you otherwise, they are wrong!

The Foreclosure Hunter wants you to be a successful investor! You’ve just read the FACTS not the FICTION on Flips! Save Money and Buy a Foreclosure!