We’ve touched on many of the critical element to house flipping success in previous posts, but if you don’t ever find a house that can be flipped for a profit, your house flipping career will never take off.
So here are a few way how you can find good houses to flip using one of the best sources for real estate deals: real estate agents.
How to Find Houses to Flip With Real Estate Agents
Real estate agents are one of the best means by which to locate houses to flip, without a doubt. they know your market, have their finger on the pulse of what's going on and are usually very knowledgable.
On the flip side, if you're not careful, you can get into some trouble here as well, so caution is recommended.
How to Find Houses to Flip With Real Estate Agents: Do's and Dont's
As a house flipper looking to control expenses at all times as well as being always on the lookout to maximize your profits, real estate agents are a great way for you to maximize your time, while partnering with other house flipping professionals who can find you houses to flip.
Here we give you a few do's and dont's on how to find houses to flip using the services of a local real estate agent:
- Don't waste their time: Real estate agents, first and foremost, are in the business of making money so you need to be careful to be respectful as well as not waste their time. Real estate agents want to make money and the last thing in the world you should be doing is running them around finding properties without making any actual offers. If you have them run around town looking for house flipping deals for you and you never take action, this is a formula for disaster. When a solid house flipping opportunity comes and all the financials add up...take action!
- Educate the real estate agent on house flipping: In many case, you may need to educate your real estate agents on the process of house flipping so expectations are set early on. Talk to them about your plan to buy properties - what kind and where you are looking. The more upfront you are with them, the better it will be for both of you.
- Build relationships first: Refer back to the importance of both building a solid house flipping team as well as the power of relationships. This is why it’s so critically important to find the right kinds of people for your team – which means that you may need to go through a few of them before you settle on a real estate agent who you are on the same page with.
- Access to MLS: One of the most important reasons to team up with a real estate agent is because they have access to MLS (the nationwide multiple listing service). This compendium of all real estate listings in the US is an essential tool in learning how to find houses to flip, as well as for use in your comps when you submit an offer. Additionally, their free service gives you some solid information on homes as well as foreclosures for sale as well. Oftentimes the real estate agent will run comps for you at your request. But better yet, a good real estate agent you develop a relationship with may give you access to their MLS database so you can do it on your own. In so doing, you can run comps so you know what the potential value play would be on a potential house flip. Tell them granting you access will save them time and allow a greater pool of potential house flips to target.
- Return the favor for them: When you are working with a real estate agent to find houses to flip, keep your eyes open for opportunities for them as well. Any good real estate investor always tries to give as much as he can get. The book The Go-Giver: A Little Story About a Powerful Business Idea perfectly exemplifies this strategy. Give more than your receive, then when you have asked for what you want, make sure you are ready to receive it when it comes. It's not only smart business, it' just good karma.
- Explore mentorship opportunities: Oftentimes good real estate agents are also house flippers or real estate investors themselves. If you think about this, it totally makes sense. They are in the field of real estate investing and have constant access to insider information on house coming up for sale or even distressed properties. Some may already be house flippers. And if you are just getting started flipping houses, finding a real estate mentor is very good way to shorten your learning curve. That mentor may exist in your local real estate office.