The first thing you should think about is what area do I want to look in. Generally speaking you should look in an area that is close to where you live. Since home flipping involves you be there to supervise the deal and usually the work being done on the house, you will want it to be a convenient distance from your home.
That being said you wouldn't necessarily want to invest in an area just because it is next door to you. You want to also find an area that will produce the best return and is a convenient distance from your home. Without doing a ton of research at your local city halls and other planning department offices the quickest way to find a good area is to ask a Realtor that you trust.
Get recommendations from friends and relatives about any dealings they have had in the past with local Realtors. Try to get one that specializes in the areas you are interested in. Once you have found one or two that you feel you can trust, tell them what you are looking for.
This can be the tricky part because they have probably heard this before and have many horror stories of driving people around and showing them properties and then not making a dime off of them on commissions. The way to circumvent this is to show them you are serious.
Have a plan, preferably in writing and convince them that you are serious. Of course if you are already pre-qualified for financing or have a money source that is committed then showing them that will go a long way to convincing them.
Realtors are like everybody else, show them whats in it for them (commissions) and how they will get it (a sale) and they will be motivated to help you succeed.
One area that you may want to start with is an area that had a substantial number of retired people living in it. Try to steer clear of adult only communities though, because you want to leave your options open when it comes time to sell it. The reasons for this are because generally speaking, the older people get the less interested they are in maintaining their homes.
The result can be a home that is in a good area that is a little shabby and has some minor repairs or updating needed to flip for a good profit.
Estate sales are also a good place to look. Often these homes aren't even on the market yet. A little conversation with the owners or their representatives could yield a great investment property. Who wants to go through the hassle of fixing up the property to sell it and maybe get a few dollars more for the sale.
Checking public records for divorce is also a good way of finding budding real estate deals. People who divorce are in a hurry to forget and move on with their new lives. You could be the answer to their problem with a quick sale.
It's been said many times in the home flipping game...you make your money when you buy, so be careful and choose your deals carefully.
Article Source: http://EzineArticles.com/?expert=Steve_J_Gerwig
No comments:
Post a Comment