New investor here. I have been walking through a lot of houses and trying to find a winner. I am getting some houses from wholesalers and their numbers seem to be very off. Ex: 130 purchase/50 rehab/240 ARV. I get my contractor to look at the property and the rehab is more like 90. I am using hard money, and after paying them back and paying the realtor fees etc..... I am not seeing the money in it for me. This has happened multiple times with this wholesaler so I will not be using them. Where do I need to look to find deals? Do I have to buy foreclosures? Any incite and help is appreciated. Thank you!
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
6y
This is the problem with flipping houses HGTV doesn't talk about. If you're paying someone to find the deal (wholesaler), paying someone to buy the deal (lender), and paying someone to do the repairs (contractor), it is extremely unlikely there will be any money left for the investor when it's all said and done.
Successful houses flippers need to perform one or preferably more of those 3 core functions. That's the value they bring in to the deal and it allows for a profit.