Volume 2: Episode 7: What You Need To Ask Your Buyers When Wholesaling Houses
One of the ways we make a quick return on our investments, with less stress and effort that comes with the traditional flip, is selling houses wholesale.
What this means is we purchase a distressed property below market value and sell to a buyer who is looking to either flip or rent that property.
Real estate guru Michael Owen explains more in this video:
In some markets, the supply of homes to flip may be too limited for your investment goals. Some investors turn to buying land and building homes to sell at a profit.
This can be a great way to earn profits in real estate. However, you must do your homework. There are many things that you need to check out in detail. These include, but are not limited to:
Flip University co-founder Michael Owen talks about these and more in this week's video.
We welcome your comments, questions, and suggestions!
This week's blog post is a special edition. Flip University founders Michael Owen and Thomas Detert do an interview-style video talking about:
Just click on the video below, sit back, and enjoy!
If you are just starting out, chances are you have a full time job taking up a lot of your time. You might have family commitments as well. So how do you fit in the time to flip houses?
Michael Owen has some answers for you.
Learning how to invest wisely in real estate is very important. You could invest a lot of time and money in real estate seminars on weekends. You will end up spending a lot of money, and losing whole weekends or longer.
Learning how to flip online is now available. It is less costly than seminars, and you get to learn in the comfort and convenience of your own home. No travelling, no entire weekends gone. Flip University has those online resources available to you!
It's a good idea to meet local bankers, house inspectors, realtors, contractors, and even other flippers....
One of the keys to success in flipping houses, or buying investment properties is being able to negotiate effectively. Being a strong negotiator gives you a competitive edge against other buyers. It can make the difference between a deal being profitable for you or not.
I recently purchased a property, listed on MLS, for $35,000 below the asking price. In fact, this house was previously under contract by another investor for the full asking price of $160,000 but he found it was too tight a profit margin to make it worthwhile. I was able to negotiate a much lower price. One of the factors was that I made a cash offer, with incentives to close including paying for title and survey costs.
As a general rule, expect 3 moves (3 rounds of negotiations) before you land a deal. I made an offer of $100,000; they countered at $130,000. I offered $115,000 which was rejected. We settled at $125,000.
Good negotiating saved me $35,000 which...
When you are selling your house or investment property, you want to sell it for the highest price possible, with the minimum amount of time on the market. This maximizies your profit.
Paying attention to these key details will help make this happen. The first impression a buyer gets is the most important impression. You want a prospective buyer to feel good when they look at your property.
The first thing a buyer sees is the yard. The yard has to look well-maintained and manicured. The lawn has to be mowed, the edges have to be cut. Hedges and shrubs need to be trimmed. Tree canopies should be at least 7 feet off of the ground. Fences should be in a good state of repair. There should be no sign of trash on the property. A well maintained yard implies that the house itself has been well maintained by the owner.
Inside, the house...
Host Michael Owen discusses the importance of doing your due diligence when it comes to flipping houses.
While this is not an exhaustive list, missing any one of these details can reduce your potential proft. Or worse yet, it could put you in a loss position on your flip.
For more information on products and services offered by Michael, please visit us online by clicking here.
DIY is a way to keep your costs down on your flip. If you have the skills, and can do good work this might be an avenue to consider. Bear in mind, the time you spend doing the work yourself is time you aren’t spending on finding a buyer, or finding your next investment property. You have to remember that your work will probably be placed under close scrutiny by a home inspector. If the work isn’t good, it will end up costing you money. Any sub-standard work or issues found will result in the buyer asking for concessions on the sale price, or demanding the work be repaired or redone.
If you are hiring a contractor, be sure to hire someone who is bonded and licensed. Check out the contractor online for reviews. Ask the contractor for references of people that he has done work for. You may find contractors at home improvement stores such as Home Depot or Lowes, buying larger...
When it comes to flipping houses, Flip University co-founder Michael Owen knows his stuff! In this video blog, he gives very useful free tips and advice on how to invest in and capitalize on your flip properties.
It is very important to know your numbers and local real estate market factors. Your research begins well before the foreclosure auctions. You need to have scoped out the properties you are interested in, and have done the math on the numbers including the bank value (minimum bid), square footage, cost per square foot, budget for anticipated repairs, comparative market values, and the after-repair value. This will help you decide on the top dollar you should pay for a given property.
Be disciplined at the auction. Do not let yourself get involved in the heat of the auction. Do not bid above your researched top dollar value for the property. Emotions and ego do not pay the bills -- disciplined research will help...
One of the most popular ways make money in real estate is to find homes to flip, rent or invest in, is the foreclosure auction. The auction process is something any real estate investor should make a strong effort to become familiar with. The best way to learn about the auction is to go attend one in your area and simply watch and learn.
Auctions usually occur at the county level. Some counties have judicial auctions that occur in a court house. Some counties have non-judicial auctions that are performed by substitute trustees. In order to be successful with the auction process, it is very important that you research the houses you are interested in prior to the auction. Lists can be obtained by the county clerk, or on foreclosure listing websites.
It is very important that you go over your numbers prior to the auction. You have to know the data on the house before...