How to find great deals to flip
- Define your criteria – Concentrate on areas with strong demand from buyers and limited supply. Single family homes are usually better for flips.
- Play the numbers game – You will not get every deal for the price you want. Figure out what the property is worth to you and do not go over.
- Get as many properties into your pipeline as possible – The more properties you get into your pipeline that fit your criteria, the more and better deals you will have to cherry pick from.
- Create efficient systems to filter out the duds – Avoid timely due diligence on properties that are duds. Quickly figure out what the property is worth to you and whether to proceed with an offer. Due diligence can wait for properties under contract.
- Write lots of offers – Play the numbers, write a lot of offers.
- Complete thorough due diligence on contracted properties – Once a property is under contract, you need to have an inspection, get rehab bids, confirm market value, confirm you have multiple exit strategies and make sure you have plenty of equity and cash flow in order to make mistakes and run into surprises and still profit.
- Cherry pick only the best deals – With a lot of deals that fit your criteria coming into your pipeline, you have the advantage of picking only the best.
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Comments (2)
Thanks for the comment Aaron. I agree, lead generation systems are great. In many areas there are so many REOs to cherry pick from it is amazing. A lot of distressed sellers are upside down too so the number will not make sense unless you do a short sale or wait for it to foreclose.
Ryan Moeller, over 16 years ago
I think you also need to add to this message is to have a lead generation system in place. I would make it a part of my schedule to track down a certain amount of ugly vacant house that aren't in war zones, i would put some kind of marketing system such as bandit signs, ads, fliers, etc in place to generate a couple hundred leads a month, I would also place "x" amount of offers on REO's in the mls system. This should guarantee your success. And if your finding deals after all of this you know your doing something wrong such as too low offers or figuring repairs for too much, etc. Good luck hunting guys. <a href="http://www.laptop-carryingcases.com/">Laptop Carrying Cases</a>
Aaron Williams, over 16 years ago