If you want to learn How To Purchase Real Estate, make sure you know the 10 most common types of motivated sellers.
While buying a property can happen quick, it is also perhaps the most important part of the house flipping process. If you wish to make a profit at the end of your project, you need to buy the right house.
What most real estate investing experts will tell you is to find a motivated seller. Easy enough, right?
But what is a motivated seller?
In essence, a motivated seller is a person who wants to sell his or her home as quickly as possible, and is less concerned on getting the full value of the property. For this reason, you as a buyer might be able to get a great deal on a property through these people.
If you want to learn How To Buy Foreclosures, make sure you know the red flags that could sink your project!
As you already know, buying foreclosures is a great way to get a house for well under market value. Additionally, since the economic crash of 2008, purchasing foreclosures has never been more popular in the real estate community.
However, not every foreclosed home is a worthwhile buy. Some properties will cost so much in rehab that you will end up losing money on the venture. Even if you break even, you will have essentially spent a great deal of time and energy fixing up a house for someone else for free.
To find out if a particular foreclosure is a bad buy, make sure you know the red flags that will sink your project.
Make sure you keep an eye out for these red flags when foreclosure investing.
Purchasing foreclosed properties is often great for house flippers. You can buy the house for well under market value, and in turn, get a great deal. Generally speaking, there are three types of foreclosures: Short sales, foreclosures bought from an auction, and REOs.
While these properties are generally much cheaper than houses bought in a traditional way, they also come with a great deal of risk. When foreclosure investing, make sure you learn the risks so you can reap the rewards.
If you are buying a property from an auction, you’ll almost never be able to see the interior of the house. This means that there is no real way to assess any problems.
However, if you are thinking about purchasing a short sale or an REO property, you will be allowed to look inside and get the home inspected. For these latter two cases, make sure you avoid purchasing a property with any of the following problems.
If you want to get a great deal on a house, try Buying Probate Properties.
As a house flipper, when you are searching for good properties to purchase, you want to get the best deal for your money. Sometimes, there are ways you can buy these houses well below market value through unconventional means.
For example, if a homeowner is facing foreclosure, you might be able to buy the house through a short sale. If the home has already been foreclosed, you can purchase it in a foreclosure auction. Or, if it doesn’t receive any bids, you can buy it as an REO property. Additionally, you might be able to find a deal if the previous homeowners are going through a divorce.
In all of these cases, the person or organization in possession of the property, whether it is the homeowner or bank, is eager to get it off their hands as quickly as possible before they lose any more money.
However, there is one way you can find and buy a property well below market value that most real estate investors don’t know about: buying probate properties.
Buying REO Properties can be a great outlet for house flippers.
In the business of house flipping, often times expert investors will seek out and purchase many different types of properties. While buying homes straight from the previous homeowner can be great, if that is your only means of finding a property, you might be limiting yourself.
To really thrive in this business, you want to consider diversifying the types of properties you buy. Some popular means of buying short sales, and buying foreclosed properties. However, what many people often overlook is something called an REO property.
REOs are essentially the third piece in the foreclosure family. The first, buying a short sale, is to buy a property from the homeowner before is foreclosed. The second option is to buy a property after it has been foreclosed, usually from a foreclosure auction. The last option is buying REO properties. An REO, or “real estate owned” property, is a home that fails to sell in a foreclosure auction.
A quick way to earn a considerable amount of profit in today’s economy is by Flipping Foreclosures.
As you probably know, a foreclosure happens when the owner of a home fails to make their mortgage payments, resulting in the lender (usually a bank) to repossess the property. While the process is often tragic for the previous homeowner, flipping foreclosures can be a great way for you to make money.
You can often buy these properties at a price well below market value, so they have an amazing possibility to earn you a great deal of profit.
While flipping foreclosures can potentially be a great business investment, there is always a substantial amount of unpredictability. Unlike regular real estate properties, foreclosed homes are not prepared by the owner to be sold. Often times you will find these foreclosed properties in a worse condition than other properties, and still full of the unwanted items of the previous owner. Make sure you know what you are doing, and follow the proper steps before you being flipping foreclosures.
The housing market has been quietly crawling out of its long slump and this creates opportunities for house flippers. There are a number of cities in the US that we have found to be the best cities for flipping houses and are especially ‘primed’ for house flipping in 2013.
While supply and demand are two chief driving components of any market, in real estate the third (and fourth) components are the availability of money and credit. Although there are a number of ways to flip houses with no money, banks are still a very good source of money for flipping houses.
If you do go this traditional route to finding money for your house flips, this money is used for down payments and the money to make the ongoing payments is obviously needed as well. Proof or credit worthiness is usually determined in the form of Continue reading
Big question...many answers. We touch on one of the best ways to find houses to flip today....
We've touched on many aspects of house flipping including the house flipping mindset, how to get started flipping houses, how to use partners in flipping houses , how to flip houses with no money as well as how to find houses to flip with real estate agents...just to name a few.
Now its time to talk about another way how to find houses to flip using a different kind of agent, the kind who deals in "short sales"...namely, the short sale specialist.
Short sale specialists are typically (but not always) real estate agents who have become experts in negotiating short sales.
What's a "short sale" you say?
The definition of a short sale is:
"a property sold by a seller by a real estate agent for less money than what the seller owes the bank who holds the mortgage"
When a seller does this, it could save the seller from Continue reading