Flipping - Posted by ? 4 Tampasteph

Posted by RonH(MD) on April 13, 2005 at 12:26:12:

Hi ME, I’m not sure if you have a RE lawyer yet for your new business, but I know that everyone in the RE business needs a good RE lawyer. Give me a call @ 866-507-0366 or shoot me an email @ protectyourassets@iwillbuyit.net and I can turn you on to a good RE lawyer in your area.

RonH(MD)

Flipping - Posted by ? 4 Tampasteph

Posted by ? 4 Tampasteph on July 03, 2008 at 19:57:14:

you seem to do pretty well at flipping. would you credit yor ability to get deal to your negotiating or just the fact that you generate leads from a lot of people who need to sell

Re: Tampasteph - Posted by Joe

Posted by Joe on July 10, 2008 at 18:11:35:

If there is so much money to be made at flipping why are you telling everyone how to do it??? I think all you real estate people are just a bunch of drug store cowboys…

Re: Flipping - Posted by tampasteph

Posted by tampasteph on July 03, 2008 at 20:08:20:

I am only going after REOs, and they are all over the place in this market. Low hanging fruit.

I make a ton of offers, and the ones I do get under contract, I make sure get to closing. The REO agents like it when you close deals, and they remember you. I haven’t been doing this very long, and I already have a few agents who call me with deals before they hit the mls. I also am constantly working on finding buyers. I search through sold mls listings and find the cash buyers and then hunt them down. :slight_smile:

Steph

Re: Flipping - Posted by Jesse

Posted by Jesse on July 04, 2008 at 10:55:55:

At what amount in terms of cents on the dollar would you belive to be to low for making REO offers

Re: Flipping - Posted by glen

Posted by glen on July 04, 2008 at 06:51:55:

some of these deals require some money up front, say a person who’s behind on payments needs to cure. I don’t see any way to get a deal like this one without some cash up front. I know there are deals out there where you can get a house with absolutely o money, I guess. How do you find an investor to put up some cash to get these good deals? And, would they expect a part of the action to use their money for say 90 days?

Thank, Glen

Re: Flipping - Posted by tampasteph

Posted by tampasteph on July 05, 2008 at 10:33:11:

It depends on the house and the neighborhood.

I don’t use any sort of formula- I just know what investors are paying for homes in certain areas, and I make my offers accordingly.

Steph

Re: Flipping - Posted by tampasteph

Posted by tampasteph on July 04, 2008 at 08:07:08:

Hi Glen,

REOs are bank owned properties that are usually listed on the mls. The only money you need up front is an earnest money deposit (1k is usually what I put up), which I do not provide until I have an accepted offer. Then, I get a deposit from my buyer of 2k. Sometimes I already have a buyer lined up before all the paperwork is signed w the bank, so I don’t even have to come out of pocket with any cash at all.

Hope that helps,
Steph

Re: Flipping - Posted by glen

Posted by glen on July 08, 2008 at 11:45:19:

Steph,
on reo’s do you do a back to back closing? I know banks to let you assign so I assume that’s the way to do it. I have two title companies here who are investor knowledgable.

Thanks, Glen

Re: Flipping - Posted by glen

Posted by glen on July 04, 2008 at 11:49:35:

Steph,
I am in Jacksonville, and market is improving in the first time home buyer arena. My problem has been finding the buyer, primarily investors. Guess I could work the Realtor deal only if I an not tied into them if I sell the house.
Thanks

Re: Flipping - Posted by tampasteph

Posted by tampasteph on July 08, 2008 at 12:03:01:

Hi Glen,

I do a simultaneous close, where they use my buyer’s funds to fund both transactions- so I don’t have to bring any cash to the table. The bank pays the majority of the closing costs on the first transaction, and I have my buyer pay the costs on the second, so it only costs me a few hundred bucks total in closing costs.

Steph

Re: Flipping - Posted by glen

Posted by glen on July 08, 2008 at 13:11:02:

I’m not sure I understand how the transaction moves. How do your buyers funds come into the picture? I guess my question is how can you be in the sandwich? The bank, as I understand it wants to close with a principal. How do you do this deal without having to actually buy, then sell to your buyer.

Glen

Re: Flipping Properties For Newbie’s - Posted by Mike McD

Posted by Mike McD on April 02, 2005 at 14:29:44:

Good post Dealmaker. One picky point though. The federal 15% capital gain rate only applies for property held for at least one year. Sounds like he wants to flip the property rather quickly. If it is sold less than a year from the purchase date, the gain is taxed at ORDINARY tax rates, which can be as high as 35%!

In the past, I have rented the property for one year after the fix up, so that I hold it for over a year. The difference in tax can be thousands of $$$$! See a really good CPA for further details.

Re: Flipping - Posted by tampasteph

Posted by tampasteph on July 08, 2008 at 13:25:05:

There are 2 separate transactions- me buying from the bank, and then me selling to my buyer, so, I am actually closing on it, but am using the funds from my buyer to fund my transaction also.

Once the bank’s title co has the title commitment and HUD ready, they email it to me, and then I send it to my title co. so they can do the title work for the second transaction. The bank’s title co (which is usually out of town) FedExes the closing docs to me for the first transaction, which I bring to my title co. and we sign all docs for both both closings. My buyer brings the funds for the second transaction, which are also used to fund the 1st transaction, and I get what’s left over. My title company then wires the funds to the bank’s title co and FedExes the docs back.

Sounds more complicated than it really is.

Steph

Re: Flipping Properties For Newbie’s - Posted by ME

Posted by ME on April 03, 2005 at 07:54:41:

Makes sense! Thanks Guys!