Posted by SCook85 on January 01, 1999 at 21:50:53:
Bob,
When I flip homes, as in assignment or simultaneous closes, I don’t do any work to them. The homes that I work on are those that I decide to keep (couldn’t assign) and rehab to retail. I do have crews that do the work for me on these. The money that I use for rehab is now borrowed. My investors give me purchase and rehab money. The rehab money is escrowed until the work is complete.
SCook85
fix-n-flip competition - Posted by sam
Posted by sam on December 30, 1998 at 20:31:35:
I have been in this business for about four years (as a landlord) and have just set a goal to pay off my graduate student loans via wholesale/retail deals on some homes. I am only 26 but I feel like I have a fairly good grounding in RE investing. I have reviewed nearly every posting and article on this site over the past six months and feel fairly confident in my ability to complete these deals. I have also completed Ron Legrand’s book “fast cash with quick-turn real estate”.
Anyway, I have noticed over the past year that competition for these properties is fierce. In the sunday paper alone I see about 15 “I buy homes ads”. Should this be a major concern?
I have a great relationship with my RE agent but he agrees that the there are a great deal of investors dealing in this market. Many investors will blindly make bids on properties. In fact, many of the RE agents in this area have gotten into the investing business and are quick to make offers (because of their access to MLS). Based on this I figure my best bet is to be more aggressive and try to get the low-down on properties before the agents do. I figure I can do this via letters, post cards, fliers, etc. to vacant or distressed properties.
Any other suggestions or ideas on how to access motivated sellers would be appreciated. Thanks.
Re: fix-n-flip competition - Posted by SCook85
Posted by SCook85 on January 01, 1999 at 02:20:52:
Sam,
If those 15 ads run consistantly you have nothing to worry about. Those investors would not be running the ads all the time if they were not producing. I have a ton of competition where I am but I never seem to have problems with buying properties. I moved to a different level when I realized that I could not get them all. I just want my fair share. I know what I have to do in order to get my share (I’m shooting for one a week right now) and that equates to making at least 10 offers per week.
SCook85
Re: fix-n-flip competition - Posted by J.P. Vaughan
Posted by J.P. Vaughan on December 31, 1998 at 06:31:45:
Do you have a system in place for working abandoned
properties? Joe Kaiser’s new course “Abandoned Properties”
may be a tool you should add to your tool kit. Once
you study that material, you will see that those 15
“I Buy Houses” ads may be a BENEFIT for you. Those guys
are all potential investors you can quick flip your abandoned properties to.
JP Vaughan
Re: fix-n-flip competition - Posted by Gerry
Posted by Gerry on December 30, 1998 at 21:26:57:
I don’t know what market you are in, but these same conditions exist in MA and NH where I operate. You’ll still get properties but you need to put more effort into acquisition than you do when the market is slow. Show up at every forclosure auction, contact owners of distressed property, out of town owners, and all of the other methods that we as investors use. It’s a numbers game.
The upside of this market is that you don’t need to expend as much effort on the disposition side. You don’t have to be as thorough with your rehabs, and you will find lots of wholesale opportunities.Up until about two short years ago my market was very depressed. I could buy bargain properties all day long, the trick was getting rid of them!Now I have simply put the energy that I used to put into selling properties into acquiring them.
When you go to auctions, let the other investors know that you would be willing to take assignments from them. Everyones’ circumstances change from time to time and you just might find someone wth a full plate at the right time.
It is important that you are professional. Move quickly and decisively. Perform on your contracts to purchase-don’t jerk people around-and you will develop a reputation as the one to call when someone needs a property gone in a hurry.
Above all, don’t be one of the ones that quit first. I have seen a number of people get frustrated and stop trying. The last auction I attended was attended by only one investor-me!
Gerry
What happened here - Posted by PBoone
Posted by PBoone on December 30, 1998 at 20:50:54:
Worry about nothing. it is my conviction that my only competition is myself.
Anyhow to the point… We in Portland just went through a MAJOR sellers market where every person that thought of investing did, properties were flying off the market as fast as could be put on many by inexperienced agents. To make a long story short after 3 years of that, the market has slowed now I hear daily how big of a mistake the so called investors made by not buying right. The moral of the story is do not get caught up in the feeding frenzy, when someone calls us or we contact them and they mention that there are other people looking at the property or placing offers, I tell them to call us if the other parties fall through. When they call we know we have them.
Pat
Re: fix-n-flip competition - Posted by Bob in MD
Posted by Bob in MD on January 01, 1999 at 11:15:11:
SCook85:
Do you contract out the work on the houses you flip? Can you sell them fast enought to get your money out?