Posted by Kristin on January 10, 1999 at 18:15:15:
JD,
Most investors don’t have the time to search for all of the properties themselves, especially if they live in a large city.
Sellers don’t always know where to turn. We buy homes ads are a good idea, but not all homeowners look for them, and many don’t know that creative options are available to them.
Wholesaling (or flipping) is a great way to make money when you’re new in the business. If you’re interested in learning more about it, try looking up Jackie in Dallas’ how to articles from the main page.
With all the talk about flipping I’ve seen in the last few days, two questions come to mind.
If a motivated seller were out there, why could’nt they just call on a real estate investor themselves to sell their property. Certainly they are aware of the ads in the paper that the investors put out(i.e. I Buy Houses) right? And on the flip side( no pun intended) why doesn’t the investor go out and search for all these properties himself, therefor cutting out the cost to the “flipper”?
I’m curious about this, any remarks would be welcomed. Before I buy any course I would just like to have these questions answered.
Thanks in advance
JD
Many of the people that are willing to sell their houses at a discount are afraid of the I Buy Houses add they seem to fear “hard sells”
As a rehabber we NEED flippers finding deals, we work on the homes and money coordination. I wish there were more in Portland OR.
Pat
Most homeowners are not aware of the “We Buy Houses” ads - and even if they are for many of these homewoners it’s easier to just walk away from their problem house than to deal with it.
You’ll find this most often with houses that are in very poor condition ( the ones even a realtor won’t list) or houses that the homeowner is about ready to loose to a foreclosure sale.
With Foreclosure houses in particular, the owners are often in complete denial - they will think up until the last minute of the day of the sale that “This just can’t happen to me - nobody is going to take my house” It’s our job as investors to give them a dose of reality!
There are investors that are people persons and there are investors that are NOT. some investors just hate dealing with sad stories, bickering families, and wishy-washy sellers – these are the investors you will most often find buying houses at the auctions. They hate dealing with the emotional homeowners.
These same type investors welcome the opportunity to buy houses where someone else has done all the negotiating and dealing with the headaches.
There are also investors that have the resources to buy more houses they just don’t have time to find more deals - they will gladly pay a flipper a hefty assignment fee for giving them the opportunity to make money on yet another rehab house. They may have to pay a flipper $4,000 or $5,000 but the rehabber will make $15,000 to $25,000 - is it worth it to them?