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 – you are sure to find sellers out there given the way how our economy and real estate market goes. Sellers are motivated for multiple reasons such as unwanted property, financial troubles, foreclosure, inheriting, divorce and so on. If you’re into flipping houses, then you should look out for these people and send them a letter telling how you can help them. In addition to that, you will find tons of leads over the internet.
Tip number 2. Practice your negotiation skills – because motivated sellers would want to sell their house quickly and get rid of their problems, this puts you in a great bargaining position to negotiate if there is equity in a deal. After you are through negotiating for the price, do a bit of analysis to make sure that the property is really a great deal for contracts. 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. These companies are investors who are closing the deal with cash and don’t have to go to banks and apply for a loan. Flipping houses with cash makes the whole process go smoothly and fast.
On the other hand, you may wonder on where you could find 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 – as soon as you found your cash buyer, you want to assign them a contract. All you have to do is to get an assignment form, fill it out, enter your wholesale fee and sign it. With the assignment of contract, it shows your right to purchase the property to someone else but you are not liable for it.
Tip number 5. Start with the title work – with regards to this, it is highly recommended to go to a title company to do titling on your behalf.