This is a tough question to answer. Investors have made money flipping real estate during any market, but with today’s swollen inventory levels, it’s becoming a whole lot harder.
The answer to the question, can you still make money flipping real estate is yes, but there’s a catch. The home has to be perfect in every aspect for you to make a profit.
How Investors Are Making Money Flipping Homes In 2010
Locate motivated sellers.
The right seller is someone who is motivated to get rid of the home as fast as they can. The best way to find these sellers is work with someone in the real estate business. Either a Realtor or another investor with seller contacts in the market you’re working.
Find the best neighborhoods in your area.
Today’s market is flooded with inventory, so you need to work the best neighborhoods that show the best sales numbers. The perfect home would be a fixer upper in a neighborhood with very little inventory and a short time frame for re-sale.
Make multiple offers.
Once you find the neighborhoods you want to work in, it’s time to make multiple low ball offers until you get a bite. If you find 30 homes in a good neighborhood, you should make 30 offers. Yes, that’s right, make offers on all of them. If you want to find a great deal, you need to find a motivated seller, and submitting multiple low offers gives you a better chance to find the sellers willing to consider your low offer.
Offer on all vacant properties.
A vacant property means someone who use to live there is still paying for it. This is a pretty good motivation to sell. Also, many vacant properties are foreclosures or banked owned homes. A bank is an extremely motivated seller, and a bank is more inclined to entertain a low offer than a normal home seller.
Handle rejection.
When you make 30 low offers, there is a good chance you’re going to get rejected on most of them. Many sellers will be offended by your low offer, but that shouldn’t be your concern. Brutal? A little. But you aren’t here to make friends, you’re here to make money. This is a numbers game and you shouldn’t worry about the no’s, instead, focus on the yes’s.
Keep your funnel full.
If you want to be successful flipping real estate and your serious about making money, you have to keep your funnel full. You should always be looking for properties, new streams of cash flow, and motivated sellers. The investors who make a living on flipping homes make offers and buy houses. If you don’t have anything in your funnel, your not doing it right!
Warning: Don’t Say I Didn’t Warn You
Many people will tell you it’s insane to flip houses right now. I agree to an extent. It’s insane for someone to expect to flip a house without any experience and tied up emotions.
Flipping is all about perfecting a system that allows you to keep your emotions out of the transaction. You must be diligent in your research, you must maintain a tight bottom line, and you have to be rigorous in marketing the home for re-sale.
As John Rockefeller said, “The time to buy is when there is blood in the streets.” It’s a brutal saying, but it’s true. When everyone else is scared, the investors who are willing to take the right risks will benefit from those who feared the consequences instead of embracing the possibilities.
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I think it is possible especially on homes that need tons of repair and sold well under market value because of it’s condition.
Danny @ Brandon Homes´s last [type] ..Brandon Market Update September 2010
YEah it still possible to homes that need renovation.
lebron´s last [type] ..What is network marketing and mlm
I like the word “brutal” here…
You do need some “brutal” real estate agent for those 30 low ball offers. Not every agent can handle that. That I know for sure!
Serhiy´s last [type] ..5 Ways to Find Home Value
The best time is now. Another saying is “buy at the funeral and sell at the wedding.” Finding short sales and foreclosures will help to get a better deal.
chris´s last [type] ..Kitchen Cabinet Styles Choose Either Face Frame Or Frameless Kitchen Cabinets
The best time is now. Another saying is “buy at the funeral and sell at the wedding.” Finding short sales and foreclosures will help to get a better deal.
It’s a great time to buy But remember your selling when the streets run with blood . Buy and hold is smart . Buy and sell in today’s market is not advised .
Unless you get the home at a decent price . Which normally means people what to buy a $200,000.00 home for $100,000 and put a can of paint on it and make $100,000.00 in three weeks . Oh yeah they also want to get it with 0 down.
You’re about 7 years too late . Been selling homes for 30 years. 80% of my buyers are investors. That’s investors who willing to pay a decent price make a small profit and go on to the next transaction. McDonnell’s sells a 99¢ hamburger and is a billion dollar corporation . My point is volume ! If you try to make big money in real estate now your chances of winning the lottery are better . If you trying to do well There’s great opportunities if you’re not greedy .
True ^^^
Love your Rockefeller quote and think it really does fit in with the best time to flip houses.
Vacant house owners are almost ALWAYS more motivated to sell at a deep discount than occupied homes. I try to target these first. Sort of the low hanging fruit.
Danny Johnson Flipping Houses´s last [type] ..Twenty Fourth Week – The Halloweenists
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