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. Say that you got the funds and don’t care to wait if the house sits in the market for quite a while, then this is a great business opportunity. 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 encouraged to do a quick sale for countless of reasons similar to foreclosure, inheriting unwanted property, divorce, financial dilemma and so forth. If you are flipping houses, what you should do is send these people a letter and tell them how you could help them of their situation. There are many different websites as well that can show you countless of leads.
Tip number 2. Practice your negotiation skills – since motivated sellers want to sell their house fast and put all their problems behind, it puts you in a great position to negotiate if there’s equity in the 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. These contracts are simple to fill out but it could be confusing so better ask local realtors to help you out.
Tip number 3. Find yourself an investor buyer – when dealing with investors, you must work with cash house buyer companies. Such companies are investors who are willing to close the deal with cash and thus, you don’t need to go to banks just to apply for loans. You can make the entire process of flipping houses go smoothly and quickly if it will be bought in cash.
However, you might be wondering where you can find these cash buyers? There are many sources where you can find reputable cash buyers like 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. What you should do here is fairly simple, get yourself an assignment form, fill everything, put your wholesale price and sign it. Assignment of contract tells your right to buy that property to someone else and you’re not liable for that property.
Tip number 5. Start with the title work – if you don’t want to have problems with the titling, then it is best to go to a title company.