Buying fix/flip Homes

Buying fix/flip Homes

Contractor · Orland Park, IL · Member since 2021 · 62 posts · 21 votes

Hello! I was wondering how everyone else purchases their properties to fix and flip. I have had no luck with wholesalers and just started trails for carrot and REI PRO. I have put offers on over 20 homes that were on MLS and they always chose another buyer. Thank you in advance.

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Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
5y

You need to improve the quality of your offers and to do a post-mortem on each property you lost out on.  Have your agent inquire of the listing agents for the properties on which you were outbid to tell you as much as they can about the offers that were ultimately accepted.  How were those offers different than yours?  Was it price? fast closing? cash only? other inducements?  You can also discover actual sales prices in your area from county records.  This is not a hard problem but it takes work to figure out where you stand in relation to your market.  

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  • Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
    5y

    You need to improve the quality of your offers and to do a post-mortem on each property you lost out on.  Have your agent inquire of the listing agents for the properties on which you were outbid to tell you as much as they can about the offers that were ultimately accepted.  How were those offers different than yours?  Was it price? fast closing? cash only? other inducements?  You can also discover actual sales prices in your area from county records.  This is not a hard problem but it takes work to figure out where you stand in relation to your market.  

  • Contractor · Orland Park, IL · Member since 2021 · 62 posts · 21 votes
    5y

    Appreciate the reply. I will look into it. 

  • Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    5y

    @Account Closed, latest true flip came from MLS. Had sat for something like 75 days before we looked and offered. Last purchase (which is going to end up being our house) was through a former neighbor who lives across the street and the owner passed, and the grown daughter was cleaning it out on the weekends.

    Not a direct route, but a friend of mine owns a vintage furniture store.  He gets a lot of pieces through talking with mailmen.  They tend to know how has moved or is moving, if someone passed away, which are good opportunities to target your marketing for off market deals.

    Knocking on doors can also drum up good leads.

  • Investor · Allen, TX · Member since 2016 · 104 posts · 37 votes
    5y

    @Account Closed it's been quite a competitive market in the past couple of years. Just to give you a couple of data points, I'd made 26 offers @ ~10-20% above asking price to close the 2nd last flip, and my last flip closed after just 2 offers and @$2.5k above asking price.

    So it really depends. But I agree with what @Darius Ogloza said 100%.

  • Contractor · Orland Park, IL · Member since 2021 · 62 posts · 21 votes
    5y

    Thank you for the feedback. I am submitting another offer now above asking. Let’s see what happens.

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