Im fairly new myself and have starting experiencing success. All the experts have told me flips are the safest and easiest way to start.
I’d suggest you call all the “I buy houses ALL CASH” adds and tell them you are an investor looking to flip. Ask them what they want, where they want to buy, etc. so you can act as a kind of goffer for them. Not the only way to go, but one that could prove helpful. All investors like having others find property for them so they can do more business with less time outlay.
Hi! I’m just starting to get into real estate investing. I have very little cash and not so great credit. I’ve been especially interested in flipping properties to earn some cash, pay off some bills, repair my credit etc. I’ve done quite a bit of reading up on how to do it, but I don’t want to do anything until I’m sure I understand the consequences both good and bad. Can any of you give me some good examples of flipping properties that didn’t require cash out of your pocket and earned a nice little profit for you? What about deals that have gone bad? I don’t want to do any rehabs myself, just find the properties and immediately flip them to someone else who will do that. Also, do you think that starting in real estate investing by flipping properties is the best way for someone like me? Or should I try other things? Thanks in advance!
I am new also, but here’s what happened to me on my first deal…(this is not intended as a turn-off, but just useful info)
I found what was thought to be a pre-foreclosure through a realtor I’m working with. It wasn’t listed & was a friend of the realtor. Here’s the details described to me by the realtor & owner:
-conventional loan of $104K (they had for only 2 years)
-$1,100 monthly p.i.t.i.
-in arrears of 3 months only, but not default yet
-owned jointly
-fair market value of $120-130k
-back taxes of approx 1,500$
The agent assured me that this info was pretty accurate. So of course I was excited. Saw the property, assessed about $5,000 in rehab work & negotiated $1,000 to the owners to walk away. I explained this would be “subject to” & I’d flip to investor (which I already had lined up).
Fell apart this way:
I didn’t do my own comps & when the buying investor did, it only came up to $110k-118K; they were really in arrears of 7 months; their original loan was sold to another loan company & data was completely lost (???); the monthly $1,100 did not include tax or insurance & this market could support a lease-option rent more than $1,100; well there’s more to this, but the bottom-line was this…I should’ve done a lot more homework. I assumed way too much & assumed that the owner & agent was more accurate.
But on the positive…I learned so much; I have 3 potential investors/buyers that I network with; a network of bird-dogs; and have met some great people out there doing the same thing.