Rehab and Flip - BaltimoreArea /Maryland

16 Replies

Hello everyone - I just partnered up with someone who has the same passion for real estate and investing like I do, as I can manage the project, and he can manage the rehab. I'm currently finalizing my business plan for 2016, and we are about to use our contractors and key contacts to start on the implementation of that plan. I have read multiple books and also attend REIA meetings regularly, but I wanted to reach out to the local and larger community on here to see:

*Where are you all finding the most success locating motivated seller leads and also buyers for those properties who can then become a consistent purchaser?

I noticed a lot of the previous blog posts were old and could be outdated. Thank you!!

I live in Frederick and There is a lot of growth hear in the last 10 years and more to come. Montgomery county is good also but prices are higher. @Russell Brazil knows a lot about the good money making areas In Montgomery Co and Frederick Co, contact him.

Thanks for the recommendation @Trey Williams . @Todd Gilfoy depending on the price point and the quality of the flips you plan to do depends on the locations and methods of acquiring the properties you will use. In certain parts of DC, Trinidad, Petworth, Brightwood....most of your flippable properties are going to be purchased right off of the MLS. These are going to require a very good renovation...not what I call a "Home Depot Renovation." A typical flip in say Petworth will be to purchase for $425k, put $100-$125k into it and sell for $650k on a 3BR or $700k on a 4br. Make $75-$150k in profit.

At a very different price point, the strategy will be similar in much of Prince George's county in that you can buy right off the MLS. Buy for $100k, put $50k in and sell for $225k. Make $20-$50k in profit.

The key in PG county is that at that price point, there will be 20 offers all cash, no contingencies as the cheaper price points allow for more people to get in.  In DC with the higher price points, there may still be competition, but maybe 3-5 people competing over the properties.

Now as you move further out towards Baltimore, that is where you might need to get on some wholesalers email list. In Baltimore City you can also buy off the MLS, but the sell side of things is a bit rougher as nothing moves quickly in that market...so you may be sitting on a listing for 3 or 4 months possibly depending on the neighborhood.

Frederick County has some properties that are flippable you can buy on the MLS, and some are found off market. By and large properties in Montgomery County and Howard County do not sell at enough of a discount on the MLS in order to flip...so flipping in those areas takes a system of finding the properties off market.

Really the easiest method of finding properties for flips is identifying what locations sell on the MLS with a large price spread between a rehabbed home and a non rehabbed home...and Ive give you a few good locations on that.

I lived in Bel Air about 39 years ago. There are many ways to find motivated sellers and buyers, I farm, make offers on expired listings and advertise, To sell I use my auction company. I buy low and sell low, but do it often.

I live in Glen Arm and my office is on Harford. Stop sometime to chat.

Charles

Todd

I have been looking to start investing in the Harford county area now for several years. I worked some fix and flips with my father in the mid 90s. That didn't work out very well for him. He was looking / working in the Baltimore city/ county area. He focused on buying houses at HUD auctions. Most of the prime property on the HUD rolls managed to disappear right before the auction.

I would love to get together and exchange notes, ideas or what ever. I'm sure we can help each other out. Regards. Eric

@Todd Gilfoy It's good to see another investor from Harford County.  Let's get together and have coffee sometime.

I have had most of my success finding deals in Baltimore county from HUD foreclosures and Auctions. I'm concentrating on buy and hold Section 8 properties for right now.

Scott

Todd, I am a real estate investor right down the road from you in Perry Hall, MD.  I have been in multi-family for a number of years, but am ramping up a new arm of my business, doing fix and flips, focusing on Baltimore County.  I have cash ready to do something, but am also struggling to find good deals.  If you end up with a steady stream of good deals and are looking to wholesale them to an investor like myself, I would love to be added to your buyer's list.

@Todd Gilfoy Welcome! We used to live in Bel Air (off of Moore's Mill and Hickory) and still rent out our old townhome there (unfortunately, at a loss). We recently did a BRRR in Harford County (Havre de Grace). You can read about it and see pictures here: Our First Deal.  We're currently working another one in Havre de Grace and have a three-unit multifamily that we finished up in Cecil County (Elkton) this year as well.

I agree with Russell in that there are a lot of opportunities in Baltimore on the MLS that are overlooked by investors. However I do disagree with the characterization that "nothing moves quickly" - a quality rehab will go under contract quickly as long as it is priced and promoted properly. Its tougher to find MLS deals in Harford County, but they are out there.

Good luck!

Thank you Brian for the endorsement. 

I believe that identifying a great deal is hard to recognize in the public forum, if there are any secrets to success in the real estate investment market it is to make the great deal by making offers often using creative alternative financing terms. 

Control as many properties as possible and negotiating the offer using the second stage" negotiating technique, first open negotiations with an offer, than close with final face to face negotiations.