In this market, how do flippers find properties to flip?

Question

Question to experienced flippers, where do you guys find properties to flip? Even though the market is hot, there are still deals out there.

Scott E. · Answer

Every single one of my deals from the past year have been from the MLS surprisingly. I've probably put 100 offers on properties, and had only a handful of those offers accepted. So you will be dealing with fierce competition, but there are deals out there.

Wholesalers have been a complete waste of my time for years now. I'm on everybody's email list... and some of the local wholesalers call me first prior to blasting a 'deal' out on their email list. But they are all trash. Either ARV overestimated, rehab budget underestimated, property sits on a busy street, property backs up to a big apartment complex, things like that.

Start writing offers. That's the first step. It'll be a while before one gets accepted, but it will also give you a feel as to the current state of your market from a buyers point of view.

Tim Delaney · Answer

@Rehaan Khan I still find good flips on the MLS. They are there, but finding them requires patience.

I’ve also gotten some leads through wholesalers but you have to be careful of the ARV and rehab estimates they provide. Especially on the rehab numbers. There are a lot of brand new wholesalers out there listening to Pace Morby tell them to estimate rehab costs based on the description the seller gives them. These are wholesalers who have never done a construction project and haven’t even seen the house but think that they can provide an accurate rehab estimate.

Andy Sabisch · Answer

You will get 100 ways to find a property ranging from retail to wholesale to off market to driving for dollars to bandit signs . . . . the list is endless but many rely on the area to work.  The bottom line is that the numbers have to work to make a flip doable.  How you find that property where the numbers work depends on your area and what the profit you are looking to make.  In our area you can find properties for less than 100K all day long . . . the problem is that putting $20K into it will leave you barely breaking even.. Be careful with wholesalers who offer you a property with an inflated ARV and an under estimated repair cost just to get you to take the assignment.  If you have not down flips before or not in the area the wholesaler is offering you a property, tread carefully as there are areas where block can make a huge difference in the payoff.

Remember the saying, You make money buying not selling . . . . so buy right and the rest flows on a flip.

We have purchased our last few properties from 1) an auction (Hubzu), 2) a FSO and 3) an under priced retail sale which had been on the market for months and all it took was elbow grease (and a better listing agent).  There are deals out there . . . but for a flip make sure the numbers work especially if you are new to the flipping side as prices for material and now labor is going up and down  every day.

Hope this helps

Kaustubh Johri · Answer

I bought an investment home through a wholesaler couple of months back for 290K. ARV was about 400K with 40K in rehabbing cost. I listed it last week for $430K (thanks to the next house that sold for $425K) and am now under contract for $445K.

Deals are there but fewer. You have to jump on when it fits your criteria. FYI - I was not the highest bidder @ 290K, however I was ready to close in 10 days since I had the cash.

Cash is key in this market !

Eliott Elias · Answer

Door knocking, building relationships with Realtors, brokers. Flippers are making numbers work, even with this inflated market.

In this market, how do flippers find properties to flip?

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