Currently, it is difficult to find a deal in the market here, especially for flips. Many people are interested in flipping properties, whether they know what they are doing or not. There are also hot markets where homes don’t stay in the market for long and buyers are willing to pay premium prices for premium products.
We offered nearly 10 properties this week. I got some, but now I’m back.
- The best and best buyers paid an additional $ 10,000
- The best and best buyers paid $ 30,000 more (!!) than we offered
Are these people NUTS! ??
I’m all about getting deals and making money. In fact, May was the best month in the real estate industry. But I’m not going to sacrifice reasonable profit and security margins in transactions that try to squeeze a small margin out of cheap transactions.
please do not.
So who says the buyers who are paying $ 10,000 more (and $ 30,000 more) weren’t doing anything completely different from us? Maybe they were doing a little rehab. Or it’s not that great. Or do not tear the wall. Or maybe they had an in-house construction worker who could rehabilitate cheaper than I did. I liked both of those homes and hung it — I wanted both of them.
So where are the places to go when such a market is very tight and it is difficult to find a deal?
4 expert tricks to find flip deals in tight markets
1. Find out which homes have been on the market for a long time.
From time to time we look at a property and assume that you can’t buy it because the original list price is higher than we pay. You can create a list of properties that you can continue to watch by taking notes of the properties you really want, touring, and creating a spreadsheet of the amount you can afford. Sometimes, after the first barrage on such a property, it sits because the property may have more flaws than the buyer is willing to pay.
2. Open your heart.
Currently we have certain areas that we love to buy for flips, but we have started homework in various other areas that are ripe for flips and have more options to buy. rice field. Do your homework in the area and don’t engage in trading without understanding what’s available and what’s selling, how many days in their market, and from selling to list prices.
If you know where to buy, be sure to drive in that area. Feel what your neighborhood looks like and get a good understanding of the characteristics surrounding potential flip trading. Make sure you are not only for sale, but where the property is for sale.
3. Consider other ways in which you can invert properties.
With one of my partners, we started to get a property where we could pay a little more, rehab for rental / flip, rent for a few years, and then in the future. There is no short-term capital gains with this method, but there is passive income and depreciation of the asset.
I have not offered you an overpayment of the property. I suggest that you may be able to put yourself in the best position by being willing to rent something for 1-3 years, and you leave that asset in a few years Think of multiple ways you can.
4. Ask people.
seriously. I probably get a lead from Facebook every other week. why? I’d like to ask. I bought a house from Craigslist. Ask other agents who know the motivated seller. And there’s a group of trusted people around me who know what I’m looking for and call me when something happens. You need to keep asking for a deal. If not, someone else will eventually ask — and they will get a deal instead.
Get your next deal!
Put together real estate transactions and contract a house … it’s easy. Keep your transactions on time and within your budget to ensure a reliable rate of return. This means that when you first close the property, you need to make sure you are working hard and making money. Prepare and run the game plan. Know what you are willing to pay and don’t go too far. Not only are you willing to pull the trigger, but you are also willing to leave.
Real estate investment is about making money, but it is also about not losing. When you decide to do business with a partner or someone else, make sure you’re not so excited to buy real estate that you pay too much and waste your holdings and cushions. You are just preparing for failure.
Stick to your criteria (bed / bath / location / size, etc.), stick to ARV, percentage or amount you are trying to make (eg $ 30k or what you are trying to make with your flip deal) I will stick to everything. And do it!
Investor: What are some tricks to find a deal in a tough market?
Please leave a comment below!