Flipping? - Posted by Beverly McCray

Real Estate Investing
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Posted by Beverly McCray on March 05, 2000 at 19:32:44:

Tom-NY and MarK-TX Thanks everyone for your help…I believe I’m on my way.

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Flipping? - Posted by Beverly McCray

Posted by Beverly McCray on March 05, 2000 at 13:16:50:

Here’s a dummy question…How do u flip a property?

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Re: Flipping? - Posted by Mark_TX

Posted by Mark_TX on March 05, 2000 at 17:06:43:

Beverly,

This is a great way to increase your capital quickly. Make sure you read the How To articles entitled “Beginners’ Quick Flip Primer (Part I & II)” on this site. I think the most important thing you can do in wholesale flipping is to line up your investors, the people you will assign the contract to, before you buy.

I can only speak from experience, and there are a bunch of people here who have more creative ways than I do when flipping, but this worked for me. I lined up investors before I bought and asked them what their criteria were for buying a wholesale flip. Then I followed it.

I closed my first deal about 5 weeks ago for $3000 with none of my own money in the deal.

Good luck! This can be done!

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Two Basic Types… - Posted by Bill K. (AZ)

Posted by Bill K. (AZ) on March 05, 2000 at 14:51:40:

Beverly,

There are 2 types of flips; wholesale and retail.

With wholesale flipping, you acquire a property at a substantial discount to Fair Market Value (FMV), or After Repair Value (ARV), so that you can make $3,000 to $5,000 when flipping to another investor. If the property needs repairs, you will advertise it as a “Handyman Special”. Believe me, investors will flood your phone with calls. You can either assign your contract on the property, or perform a simultaneous close as soon as you have identified your buyer. In fact, if you execute a wholesale flip perfectly, it can cost you next to nothing to tie it up and flip it.

With retail flipping, your intent is to ultimately sell the property to an owner occupant. If repairs are required, you may choose to make them. However, make sure that you negotiate a good price. Holding time on retail flips can be considerably longer than wholesale flips. Hence, holding costs can add up quickly.

I hope this helps.

Bill K. (AZ)

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Re: Flipping? - Posted by tom n.y.

Posted by tom n.y. on March 05, 2000 at 18:29:52:

Mark how did you go about finding investors in your area.