How to Start and Be Successful in Flipping Properties
To start buying houses to flip, take these eight easy steps in the area in which you believe there is a good potential for your business:
1. Look around the area. Check to see if you have a supply of houses to buy and sell.
2. See if there is a demand for housing in the area. Young families need low-priced homes.
3. Get estimates from HUD, FHA, the VA on typical housing prices
4. Check local papers on Sunday for bargain properties. Read every classified For Sale ad. You'll almost certainly find bargains.
5. Visit potential bargains; see how much work they need.
6. Find a competent contractor who can help you with needed repairs.
7. Bid on your first flip house, after you know how much profit you can make on it.
8. Do your first flip job. Go on to more, using creative financing.
You can make money using creative financing in flipping. For best results, you should have some experience with home repairs. And you should not be afraid to pick up a hammer and start working!
But if you're "all thumbs" — as some people are — don't give up. Get an experienced house mechanic and arrange to have that person do the work. Offer an incentive—such as a share in the profit on the sale of the property. Then your repair work will be done while you do the
financial planning!
Take Lenders Out of Foreclosure Properties
Closely related to flipping is the Foreclosure Specialist who takes lenders out of properties they don't want to own. These properties are often called
REO — Real Estate Owned. No lender wants REO properties on its books! Why? Because a lender's business is to accumulate money and then lend it out on safe loans to earn interest. The interest earnings are shared with the suppliers of money. Such suppliers are people who put their excess funds into savings accounts, bonds, and similar holdings.
No lender wants to own property! Every lender wants nothing more than to receive a check on the first of every month for the repayment of a mortgage loan the lender made. That's "lender heaven."
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