Finding flips

4 Replies

How do people here find the best deals for houses to purchase and flip? Could anyone explain their process in a nutshell from how they find the property online to how they make an offer? In curious what qualifies a good deal from a bad deal. I feel like for the most part houses are priced fairly and there are many bank owned properties to choose from in my county. How do you differentiate the good homes from bad?

Jennifer, 

Finding a good deal takes effort and luck. Wholesalers are one avenue that a lot of flippers use. Try putting your self on several mailing lists in the area you want to focus in. Check out their offers and do your own homework as far as comps and rehab costs. 

Best of luck in all your ventures. 

That's where experience comes into the picture. I would suggest go through 20 deals and analyze them to the best you can. Pick up a few and post on BP for feedback and see if if aligns your thought process.

There are millions of ways to look at a deal and" no one size fits all".

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@Jennifer Fernéz There are several ways to find flips. Perhaps the easiest is to get them from wholesalers. They'll take a cut, though, and it will make the deal a bit tighter. You can find them off the MLS, as well, but given the competition, those too will be tight.

By tight I mean 75% ARV minus repairs (at best). If you are using hard money this often does not leave enough margin. With private lending it is very tight. With your own money it is definitely doable.

To find at 70% ARV minus repairs or better you are likely going to need to find off market deals. You might stumble across one just by word of mouth if people know what you do. Or might find them by driving around and looking for property in disrepair, or you could send out mailings to absentee landlords, to people with equity (look up Michael Quarles), by pursuing short sales, or probate.

It is not easy.  But opportunity is made by those who are willing to get over the hurdles.

Hi Jennifer Fernéz, I experienced the same type of problem and started a company to solve it. (full disclosure this is my company, but I thought to mention it since it literally is the answer to your question - and it's completely free for investors).

Essentially what we do is every morning we analyze every listing on the MLS and for every listing we estimate After Repair Value, Rent Potential and repair costs. Then we display all this including comp sales and comp rental on our online platform. Investors then can search for properties that match their investment criteria.

We'll be launching the full product in a couple of weeks (mid-Oct 2019), starting with Texas. If you'd like to learn more direct message. Happy to help.

All the best,

Tommaso