The concept of buying low and selling high is not a new discovery.
Just ask Donald Trump! He is a billionaire from the very concept.
Having a rehab business is the same concept but on a smaller scale.
We look for distressed properties to buy low and sell high!
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To profit by Finding/Fixing/Flipping, we must:
1st - Find a house.
2nd - Fix the house.
3rd - Flip the house.
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Don't be overly concerned with the competition buying real estate foreclosures. Sure there will be competition but there is in all businesses!
I am sure you have been seeing more paid programming shows regarding
flipping houses. For Example, 'Flip This House' & 'Property Ladder' are about new and seasoned investors attempting to flip houses for a profit.
I must say there have been more new investors coming into the market attempting
to flip houses over the last few years. There are also more people losing money and getting out of the market. More importantly though, there is and will continue to be record breaking amounts of foreclosures coming onto the market!
The increase in the foreclosure market is partially due to interest only
loans. Interest only loans allows a consumer to only pay monthly interest
on a loan. Therefore, the principal balance on the loan is not being paid.
Back to How To Flip Houses by finding, fixing and flipping.
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After purchasing a property, there are a couple of ways to go about fixing
and flipping the house.
1) Delegate all the repairs, doing little or none of the work on your own.
Or
2) Complete some repairs on your own and eliminate potentially high contractor
costs.
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I prefer delegating all of the work to contractors. This allows me to do
the things I love the most - Such as, getting my son on and off the school
bus, going to the gym or spending time with my family.
A good way to buy 'fixer upper' properties is by calling a local agent in the
area. A good reason for this is because banks usually list their properties
through real estate agents. The properties are usually cleaned out and you get
a clear title at closing.
After you purchase a 'fixer-upper', you will then need to decide if you are
going to get your hands dirty and cut costs or delegate the work to a contractor.
You can also do minor work at the project in order to oversee the project.
By Jeff Knize, CRA, ICAP member
www.foreclosuresandflips.com
www.uspropertybuyers.com
www.knizeappraisal.com
