A little guidance please. How does flipping actually work? Is the goal simply to tie up the property by finding something below market price and entering into an "option" to by with the seller, then finding a buyer as quick as possible? What are the rules of locking in this option? I assume I need to pay some type of upfront premium to lock in the property. If this is the case is it easy to find such sellers? What benefits does a seller have for cooperating? Why would a seller waste his or her time?
Thanks for the help guys
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@Adam Zachmy My fiance and I relatively new to the game, but there are many different flip models. Our model is to find a property that has potential, purchase that property, fix what needs to be fixed and make it attractive to new sellers. Once it's ready list it and get it sold as quickly as possible.
I think the model you're talking about is a double close, where you act as the middle man essentially. I don't have any experience there, but I'm sure someone else here would be able to tell you more about that.
@Jessica A-Lynn : thanks for the feedback. I am also very new to the game. I heard about flipping the way you described, I just wanted to gather more insight to the other potential methods. Will keep looking.
@Adam Zachmy , what you mentioned initially is typically referred to here as one method of "wholesaling". If you do a search here in the forums, you will find many many posts about it.
It is not easy to find sellers willing to sell at a discount but that is the key to finding off market deals. Such folks are referred to as "motivated sellers," they become motivated for different reasons like bad tennants, damaged property that they cant or dont want to fix, a property falls into their lap that they want nothing to do with, etc.
You as the investor dont need bank approval, you can offer cash and the ability to close quickly. You sign a purchase agreement with seller and get private financing or sell your contract to an investor for a fee (called "assigning" the contract).
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