When flipping houses, real estate investors are buying properties for a low price, fix it up and resell it to make twice the profit of how much they originally bought it for. Actually, this is a great strategy if you’ve got the cash and do not care waiting for 3 months or more to have it sold. You have to be aware of the next tips that I will discuss if you are planning to penetrate this investment.
Tip number 1. Find a cheap property – with how our economy as well as real estate market goes, you will find no shortage of sellers. Sellers are motivated for a number of reasons like foreclosure, inheriting unwanted property, financial troubles, divorce and so forth. If you’re into flipping houses, then you should look out for these people and send them a letter telling how you can help them. Also, you can find endless leads over the internet with a fully optimized website.
Tip number 2. Practice your negotiation skills – because motivated sellers would want to sell their house quickly and get rid of their problems, this puts you in a great bargaining position to negotiate if there is equity in a deal. To ensure that the property is really a good deal for contracts, see to it that you’ve done analysis after negotiating for its price. Such contracts are easy to fill out but without realtors help, it can stir confusion on your part.
Tip number 3. Find yourself an investor buyer – when you are dealing with investors, you have to work with cash house buyer companies. These companies are investors who are closing the deal with cash and don’t have to go to banks and apply for a loan. Flipping houses with cash makes the whole process go smoothly and fast.
However, you might be wondering where you can find these cash buyers? The truth is, it’s quite simple as you can find them in foreclosure auctions, networking events or local real estate investors association.
Tip number 4. Assign the contract – the moment that you found a cash buyer, you have to assign them a contract. All you have to do is to get an assignment form, fill it out, enter your wholesale fee and sign it. With the assignment of contract, it shows your right to purchase the property to someone else but you are not liable for it.
Tip number 5. Start with the title work – in this regard, it will be recommended to go to a title company to carry out the process on your behalf.