Looking for some advice here, who has started out their Real Estate Investment career by flipping homes? I have heard from several people that's the way to start by building capital off buying homes for cheap, doing little or nothing to them, and selling them for more...
So how do you find these homes? Are their particular things to look for to know if you can make them sell for more?
There are dozens if not hundreds of things you should consider when looking at flipping homes. I'd suggest trying to find a mentor who can help guide you early on.
But to more specifically answer your question, I like flipping with the worst house in the best neighborhood. Allows me to maximize ROI most often.
Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
19y
The main component in any wholesale flip is price. You have to buy it cheap enough that you can sell to another investor and they can still get a good deal.
Now what is cheap enough? Depends on your market. In my market I usually buy houses for 60-70% of ARV minus repairs. Depending on the area of town and the amount of repairs, I know I can wholesale them to another investor for 70-90% of ARV minus repairs.
I have always bought a potential wholesale flip from two perspectives (now three). First off thinking how much I could flip it for and sell it within 30 days from my closing and make my minimum wholesale profit. Second, with the worst case scenario that I have to rehab it myself and still can make my minimum rehab profit. And now I am actually adding in a third with what I could carry the note for. It has to hit all two (three now) or I don't buy it.
Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
19y
And how to find deals? Well that is a business in itself. There are a multitude of ways that you can find just on this forum. The key is start doing a handful of them and KEEP doing them. Be consistent in the marketing/looking that you are doing, and then add on additional methods as you go. I find houses through 20 different methods that I consistently do, and I am still adding more. From driving neighborhoods to assorted mailouts to sifting the MLS to foreclosure sales, there are tons of ways to find deals. Again the key is to actually do them and keep doing them.
Real Estate Coach · Atlanta, GA · Member since 2008 · 80 posts · 5 votes
19y
The best advice i can give you is to double check everything. Every descision you make in the first several deals should be checked and double checked with reliable sources. If you cant find reliable sources then get multile sources and make sure you are getting a consistant answer.