flipping... - Posted by Eric LaPatka

Posted by Kent C on February 22, 2002 at 03:31:24:

5 years ago I would have paid up to 80% for a fixed up property. But I just wanted rentals at the time. Now I want to make money up front upon remodeling. I expect 50% of its estimated fixed up value…tops and prefer 30%. Kinda depends how much work I have to put into it.

The most I would remotely consider right now for a fixed up property would be 70%

Kent C

flipping… - Posted by Eric LaPatka

Posted by Eric LaPatka on February 17, 2002 at 21:20:18:

I am relativly new (haven’t done a deal yet but itch’n to get it out of the way) and have a question regaurding flipping. I am sure that i can find good deals, and put them under contract but I am wondering how I can find buyers. to me this seems to be a pretty hard task. Should I find them before i find a house, after I find a house, while i am finding a house? Any advice will be helpful. Thank you. Eric

Re: flipping… - Posted by Redline

Posted by Redline on February 18, 2002 at 21:02:42:

Steve is the resident expert here probably, and his advise is sound.

What I would say is … finding buyers for your deals is EASY as long as they are really deals! If you sign up good deals, you’ll have a line of people waiting to buy them. The hardest part is FINDING the deals, IMO.

Good luck,

Re: flipping… - Posted by SCook85

Posted by SCook85 on February 18, 2002 at 08:36:06:


Like anything else this is a maturing process. It is difficult for you to actually have buyers lined up when getting started out. You don’t know them and they don’t know you. They don’t know that you can actually find them homes an aren’t going to be willing to make any hard commitments until you do. As time goes buy and you have done a few deals you begin to know what investors like and you can feel rather confident when you buy homes of who is going to buy them from you.

Start compiling a list of people now. Preferably those who run I Buy Houses ads (make sure they aren’t newbies trying to do the same thing as you), Call on ads of people who have homes for sale with phrases like “newly remodeled”, “recently renovated”, owner financing, etc… These are most likely other investors who will be looking for new projects.

You may not sell your homes to this list that you compile in the beginning, but your list will grow over time and you will get to know the preferences of the people on that list over time.

I would suggest immediatly putting an ad in the paper, this is how I found most of my buyers and I still do it every once in awhile when my regulars are not in a buying mode.


Re: flipping… - Posted by wrw

Posted by wrw on February 18, 2002 at 24:55:14:

Hi. I am fairly new to this myself. The approach I am taking is one that I got from someone doing this a while. I have made a list of and talked to other local investors. The investors on my list have all expressed interest in buying deals I bring to them. I would recommend haveing a list of at least 10 investors. If you are buying between 60-70% of FMV (that’s what I have been finding) you can then mark it up 10-15% and flip it to another investor. You might not make as much this way as if you sold it FMV, but there is less risk and it takes much less time especially after you develope relationships with your buyers.

Re: flipping… - Posted by Brent_IL

Posted by Brent_IL on February 17, 2002 at 23:27:24:

In my experience, the level of difficulty in finding buyers depends on your exit plan. If you are looking for a buyer to pay cash to the existing mortgage, and buy at FMV, you will be in competition with every real estate agent in the area. A buyer may be hard to come by. If you sell on terms, L/O or other, you will have so many buyers that your challenge is to pick the best one.

Re: flipping… - Posted by JoeS

Posted by JoeS on February 17, 2002 at 22:17:18:

I have found it best to have buyers lined up before. That way the process goed smoother.

Re: flipping… - Posted by Richie

Posted by Richie on February 18, 2002 at 20:55:50:

I don’t know about the other’s on this board, but I wouldn’t touch a property for 85% of FMV. Just out of curiousity, does anyone else on here use wholesaler’s? If so, what is the greatest percentage of FMV that you are willing to pay? This is assuming a normal market (not a hot market where prop’s are hard to find).

Re: flipping… - Posted by M.J.

Posted by M.J. on February 18, 2002 at 15:36:26:

wrw,I am starting out too. When you flip a property do you make an offer in your name then have your investor buy out your position using an assignment of contract, or do you do a double closing?