I own a construction company and have a good network to start buying and flipping. I just don’t know where to start. I was working on a house on Monday and the house next door is in bad shape and vacant. It will be sold cheap. I just don’t know how to approach the situation. Any help is greatly appreciated. I need the basics.
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
@Luis Ascencio first thing is to determine what the house is worth so you can negotiate when you find the owner.
look up the owner in the tax records as @George W. said. If they are absentee owners you can use www.truepeople.com to search for the owners contact info for free. You can search the address of the house and it will give you numbers for people who have lived there.
Once you have the number call them, introduce yourself and ask if they are interested in selling. Keep it simple. Ask how much they want. Then negotiate a win win.
Investor · NJ · Member since 2018 · 869 posts · 921 votes
7y
Maybe you can find out who owns it through tax records at the county or township. Then figure out where the people who own it are now and reach out to them.
Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
7y
@Luis Ascencio first thing is to determine what the house is worth so you can negotiate when you find the owner.
look up the owner in the tax records as @George W. said. If they are absentee owners you can use www.truepeople.com to search for the owners contact info for free. You can search the address of the house and it will give you numbers for people who have lived there.
Once you have the number call them, introduce yourself and ask if they are interested in selling. Keep it simple. Ask how much they want. Then negotiate a win win.
@Greg Dickerson i think I can get a hold of them. My question is how do I determine what it is worth and if I make an offer and they approve how do I get funding for a flip. Should I get funding first ? Then make an offer ?
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
7y
@Luis Ascencio Talk to a few hard or private money lenders to get a sense of terms you will get for a fix/flip loan and underwrite that into your numbers. And run numbers for both a flip and for a hold that way you know both exits. You could get that done in a hour or so... Unless you have a "rich uncle" that will lend you the money.
@Greg Dickerson i think I can get a hold of them. My question is how do I determine what it is worth and if I make an offer and they approve how do I get funding for a flip. Should I get funding first ? Then make an offer ?
You have to run comps of similar properties in the area. You can also talk to a couple of realtors to get there opinion of ARV. Then use the 70% rule to determine MAO