No one gets very far fixing and flipping houses for profit without access to discounted properties. Successful fix-and-flip entrepreneurs like Christopher Graeve understand that home flipping opportunities come from many sources.
Anyone interested in flipping houses needs to know how to find good deals. Suitable properties are at least 30% off their expected market value after repairs. Since most people selling homes are looking to get top dollar, investors need to dig dipper.
When lenders foreclose on homes, they often send them to auction for the sake of rapidly closing sales. The county court house is typically the venue for these auctions. Counties publish lists of upcoming foreclosure auctions at their websites. Auctions happen once a month or as needed. Investors sometimes obtain properties at a discount, but multiple bidders could drive up prices.
Private companies that handle estate liquidations occasionally auction off homes as well. In addition to monitoring the county court house auction listings, an investor could contact estate sale companies to find leads.
REO stands for real estate owned, which means that a bank owns the property. To access lists of REO properties, people can call a bank and ask to speak with the REO department. Banks will often be willing to sell these homes at a discount to get rid of them.
A short sale occurs before a lender completes a foreclosure on a home with a mortgage in default. The lender and the struggling owner might arrange to sell the property at a discount. This lets the owner escape the mortgage and allows the bank to avoid the prolonged hassle of a foreclosure.
Investors could inquire at lenders to learn about homes that are available for a short sale. Numerous online services also sell lists of foreclosures and short sales.
Publicly Listed Properties
The MLS listings accessible by all real estate agents and the public listings at various real estate websites might contain appropriate deals. They won’t last long though. The MLS listings aren’t usually the best source for homes to flip, but they should be monitored. Investors often maintain relationships with agents who can alert them to new listings with flipping potential.
Direct Deals With Motivated Sellers
As with most things, the elimination of middle men reduces costs and likely speeds up the purchase process. Fix-and-flip investors like Christopher Graeve, founder and CEO of RE-Build Properties, ideally make contact with sellers before a home is listed for sale or enters the foreclosure process.
An excellent way to identify people who might want to sell homes they can no longer afford is to look at a county’s delinquent tax list. The tax delinquencies reveal addresses and homeowner names. Investors can begin by contacting the people by mail and possibly follow up by knocking on doors.
Companies known as real estate data services also organize information about tax delinquent and distressed properties. Some services even enable users to send out direct mail inquiries to the homeowners. Sometimes people will respond with a desire to sell.
Some old-fashioned gumshoe investigating in neighborhoods might uncover distressed homeowners as well. An investor could look up the public details about homes that appear neglected. They might be occupied by people experiencing financial difficulties who could be motivated to sell at a discount.
Partner With Real Estate Specialists
People could join a real estate investment group to participate in deals and learn how to find distressed properties. Seeking assistance from fix-and-flip experts like Christopher Graeve, who has scouted out good property deals for years, presents an efficient option as well.
No matter how people find homes to flip, they should always examine the details closely before making purchases. The title needs to be checked for liens. A potential buyer should strive to inspect a home as thoroughly as possible to gain a full understanding of repairs before moving forward.