Most real estate investors know that working with wholesalers can be a great source of potential deals. Wholesalers have been known to be a great source of very lucrative deals.
Unfortunately, working with wholesales is not a walk in the park. You have to work it if you want to find killer deals. As you work with wholesalers, you will soon realize that how you deal with one wholesaler isnâ€™t necessarily the way you deal with another.
Types Of Wholesalers
These are seasoned real estate wholesalers who have been wholesaling for a long time and are seasoned real estate investors. Their primary business is wholesaling real estate and sometimes they dabble in other deals.
Itâ€™s important that you build a solid relationship with career wholesalers because they could be an excellent source of deals for you. These types of wholesalers are well financed and usually take the best deals for themselves. The bad news is that these types of wholesales are a little challenging to work with.
Ladder Climber Wholesalers
This type of wholesales are either looking to get their [click to continue…]
If you have done any kind of real estate investing, you must have at one point considered using a contractor and as such, you probably know that trying to manage a contractor is not an easy task.
Contractors are known to do things that are less than pleasant but the best way to flip real estate is to work with a contractor. So how exactly do you manage your contractor?
Unfortunately, contractors do not have a very good reputation. Most real estate investors consider them difficult to work with, irritable, pugnacious, irrational and volatile. The good thing is that they are very good at what they do and this is what makes them worth the trouble.
The Four Step Formula To Success And Profit With Your Contractor
There are a few things that can help you manage your contractor and make a profit.
Setting A Defined Timeline
To avoid dragging your house flipping projects, ensure that you [click to continue…]
When we go shopping, we always want to know how much something costs. So Iâ€™m not surprised when the biggest question that I receive is â€œwhat would be my house flipping financing costs?â€
Itâ€™s impossible to put an exact figure on the cost of flipping a house. House flipping comes with so many variables so itâ€™s hard to tell how much it would cost. It can cost you anything from hundreds of dollars to thousands of dollars depending on your market, rehab costs and plenty more factors.
First, you need to know how much the property will be worth when you are done rehabbing. Once you know the value, all other costs that come with the rehab will start to make sense. This is what is known as the ARV or the After Repair Value.
The best way to get an estimate of the ARV is to compare prices of similar properties in the same area of your target market in the past three months. Get a local realtor to help you determine the ARV faster or alternatively, you can do the research yourself by visiting websites such as Realtor.com.
Keep in mind the following things when determining ARV:
- Only look at sold houses and not those still on sale
- Only look for recently sold houses. They should have been sold within the last three to six months.
- If there are no recent sales then this could be a sign that perhaps properties in the area are not on demand.
- You can square footage to determine ARV. All you have to do is divide the sales price of property in the area by the square footage of the house. From there, use the square footage in your house and multiply it by the price of per square foot. Although this is effective, itâ€™s not as great as doing a price comparison of the homes in the area.
- You can adjust the price accordingly depending on the number of bedrooms and bathrooms in the property.
- Factor in water views and look at other properties that have similar size lots
- Factor in updated features such as new baths or new roofs, heating systems, kitchens, etc then adjust your price accordingly.
A List Of Things That Determine How Much A House Flip Costs
The amount of money you will spend on rehab will depend on [click to continue…]
There has been a lot of speculation about house flipping-- foreclosure flipping, to be specific. Is foreclosure flipping dead?
Well, many people have their reasons as to why the number of foreclosures are on the decline, but the truth is; foreclosure is fading for a number of reasons many people haven't thought of.
Of course, the promising economic data and the raw figures of new foreclosures may have drove foreclosure flipping to its end, but thereâ€™s a new player in town thatâ€™s killing it even moreâ€”the hedge fund. How?
Hedge funds are experimenting with [click to continue…]
Becoming a reliable house flipper is all about being honest and distinguishing yourself from unscrupulous people in the business.
Many people have a negative attitude towards fix and flip specialists. The negativity comes from different sources including clients, banks and even government. I had some reservations when I was starting my house flipping website. I handle other aspects of real estate as well but I did not want to present myself as a fix and flip professional. This is because of the bad rapport that is normally associated with this business.
The Downside Of House Flipping
To be completely honest, there are a number of reasons why house flipping has received so much criticism. One of those reasons is the large group of unscrupulous people in this business. These are people who look to make great profits through dishonest methods and by scamming investors. They buy property in bad state and do nothing in terms of repairs. Therefore, they do not improve the value of the property. They then flip it to an unsuspecting buyer.
On the other hand, some house flippers buy [click to continue…]