House flipping is one attractive investing strategy in real estate. If offers good profit margins, only when know what you are doing. It is interesting how house flipping works.
An investor buys a shabby home at a discounted price. Within a short span, the home is converted into a mouthwatering property. As if that’s not enough, the investor sells the home and pockets good returns.
The major hiccup in house flipping is finding the right property. It gets even harder if it is your first time. Once you complete your first flip, it gets less bumpy. Fortunately, there are several ways of finding the best houses to flip. Select any that will work for you.
#1: Use a real estate agent
Engaging a real estate agent is an efficient way to speed up your property search. Real estate agents understand the local market in and out. They can guide you to find undervalued homes. A real estate agent is a good option if you are unfamiliar with a given locality.
There are several real estate agents. Hire one that focuses on real estate-owned (REO) properties. These are properties held hostage by lenders or guarantors due to a defaulted payment.
The lenders usually use chosen real estate agents to sell these homes. The houses are not always well taken care of by the occupants. Therefore, tend to be sold below the market value. They are a golden opportunity to scoop a good deal.
Make More Money Resources:
- Real Estate Investing School: How to Retire on Passive Income
- How to Increase Your Income and Master Your Money (Saving, Investing, Taxes)
#2: Watch out for auctions
Foreclosed properties are the common homes in auctions. These are bank-owned properties. The bank is always ready to sell at a low price. This is because holding them results in additional costs to the bank. This makes them the best investment opportunity.
Auctions are posted a few weeks prior to the auction day. You have time to check out the lists and find out your desired property before the day of sale. With an auction, the sale happens on the spot. The best way of financing auction homes is through cash.
As much as you are likely to land a good deal in an auction, the risks are also high. You don’t have the time to inspect the property before paying for it. To be on the safe side get the help of a real estate agent. During the bidding, set you’re your ceiling and abide by it
#3: Be part of a real estate investment group
With a real estate network, there is no surety of landing a deal. However, it is a good platform to be part of. Real estate investment groups are a good source of real estate knowledge. They provide socializing opportunities that can help you find a house.
These groups usually have monthly newsletters with real estate listings. Their websites also have information on available houses within their network.
Ask your current connections to help you join a network of like-minded investors. Attend real estate meetings to freely interact with other investors and potential property sellers.
In any group, contribute as much as you take to remain relevant. To make it fun and informative be part of those on Facebook and LinkedIn. A network will give you an investing community to belong in.
Learn –> How to Invest in Real Estate, Make More Money and Retire Early
#4: Create your own website
Thanks to platforms such as wordpress.com, square space, and wix.com, they have made website creation easy. Create a website that attracts motivated sellers to you. Make the website simple but still luring.
From your website, let a seller be convinced of selling their house to you. They will leave their contact information for you to get in touch. It is prudent to customize your website to a given city or town. Then advertise your website to prospective sellers in that area.
#5: Engage wholesalers
Wholesalers specialize in finding distressed properties. They assign them a contract. Then later sell their ownership rights to a willing buyer. A wholesaler can also be another flipper overwhelmed by many houses to flip, seeking to offload.
You only pay the wholesaler a fee as a middleman and take their place in the contract. It might not be a cost-saving method. But it will save you the hurdles that come with house hunting. Wholesalers are well known in particular localities and to real estate agents. Therefore they will easily connect you to the right sellers.
But how do you find these wholesalers? They are members of real estate investment groups. You can also do internet searches to get them. It is better to gain small profits from flipping than no flip at all for lack of property.
Learn –> How to Increase Your Income and Master Your Money (Saving, Investing, Taxes)
#6: Search multiple mail listing services (MLS)
Licensed real estate agents have access to a database of all properties for sale. The MLS classifies these properties per geographical location. On the site, the properties on sale are well described. Attach yourself to someone who is able to use the list.
The houses listed are not necessarily the flipping type. But don’t overlook this method. Do your search. You might find a foreclosure. This will give you a profitable deal. The best thing about MLS you will get comprehensive information about a property in a given locality.
#7: Direct mail campaign
This is a speculative way of looking for the right properties. You buy a mail listing and send mails to a target area. Your mail must be appealing for a potential seller to open it. Make the envelope attractive. The mail should be a flyer with a persuasive message.
For this method to be effective, conduct simple research. Identify homes where owners are absent. You can also look for expired listings before sending your mails. Let them know you buy houses in any condition. Consistency will bring forth good results.
#8: Driving or walking for dollars
With driving for dollars, you just get up, walk or drive around in your selected locality.
Talk to people in that area expressing your interest. Let them know you are a real estate investor looking to buy a house. They understand their neighborhood better. They will help you identify homes that look abandoned.
Go ahead and knock and let the prospective seller know your motive. Alternatively, take the address to send a mail. If you are lucky, they will get back to you.
Final thoughts
Choose to have a smooth house flipping business by dealing right. Learn where and how to look for the best houses to flip. Use multiple sources to increase your probability of landing a good property.
Search for both on and off-market properties. Above all always conduct due diligence before settling on a property for a profitable flip. Get the right property and achieve your financial goals through house flipping.
Take a Course On Making Money & Investing
- Learn –> How to Increase Your Income and Master Your Money (Saving, Investing, Taxes)
- Learn –> How to Invest in Real Estate, Make More Money and Retire Early
Or sign up for my weekly email newsletter to get tips and lessons sent to your inbox.
