Re: Flipping? - Posted by Jackie in Dallas
Posted by Jackie in Dallas on January 10, 1999 at 19:12:19:
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?