Ready to start ‘flipping’ – a little help please - Posted by Keri
Posted by Keri on February 12, 2002 at 21:13:15:
What an excellent group you have here! I’m so glad I found you!
Okay, I’m ready to go…
I’m broke, unemployed (layoffs), and have never purchased a house but have done my research and decided that the safest way to ‘get my feet wet’ in real estate is by starting with ‘flipping’ property contracts.
I will be looking at pre-foreclosure homes and have a pretty good idea of how this will all work from how to find the homes, how to talk to distressed sellers, how to tell if it’s a good deal (FMV, comparables, etc), how to find investors to ‘flip’ to, even the contract including important clauses to include etc.
My question is this…
Because I have never ‘closed’ on any type of property before and am not sure how this is all going to work…
What happens at the closing when the seller, ‘flipper’ (me), and investor all go to closing? Are all closing costs covered by the investor since I’m ‘flipping’ the contract/property to them? Also am I supposed to let the investor know how much I’m making on the deal and, if not, how could I possibly conceal that? Would it still be honest?
Also, how can I show the investor the property (because being a pre-foreclosure it will probably need some repair and any investor would want to see the property) without the investor making a deal with the seller behind my back?
Would I still have to pay appraisal costs? Can I pass them on to the investor?
If anyone could direct me to a course and/or other resource(s) that literally spells out the step-by-step specifics of closing a contract ‘flip’ deal including all applicable costs etc (for someone who knew absolutely nothing about real estate before:) it would be very helpful.
I want to make sure ‘all my ducks are in a row’ before I end up at a closing not knowing what to expect. Being broke, I can’t afford to really put any money into this when I start…I know it can be done – I just need to know specifics to keep myself out of trouble:)
I appreciate any help, guidance or advice you can contribute.
Thanks for your time and help,
Vancouver, WA / Portland, OR - USA