http://www.finditflipitforum.com/ A place for bird dogs, investors and wholesaling real estate professionals to connect en-US Wed, 08 Sep 2010 19:33:21 +0000 http://bbpress.org/?v=1.0.2 q http://www.finditflipitforum.com/search.php http://www.finditflipitforum.com/topic.php?id=18#post-18 Thu, 18 Feb 2010 00:48:39 +0000 admin 18@http://www.finditflipitforum.com/ <p>Well the answer is you can't do this with any degree of accuracy if you are not already in the real estate business. You will need to use your best judgment to determine rough estimates for repairs, then get a licensed professional to make a formal professional estimate for you and write it out. </p> http://www.finditflipitforum.com/topic.php?id=17#post-17 Thu, 18 Feb 2010 00:37:56 +0000 admin 17@http://www.finditflipitforum.com/ <p>You will need to visit any property you are planning on buying to tour the property and take notes on the condition it is in, and if it is worth fixing up. Take notes of what you see on a nice legal pad, and try and estimate what it would cost to repair what problems you see. Note if the property falls into the category "light rehab" "rehab plus" or "full rehab"</p> <p>Light Rehab would range from no repair skills (a cleanup, new paint, minor weekend repairs) to a project that requires light work from a handyman.</p> <p>Rehab Plus projects would range from full work for a professional handyman to needing a licensed contractor.</p> <p>Full Rehab projects would require the need of a licensed contractor, or multiple contractors. </p> http://www.finditflipitforum.com/topic.php?id=16#post-16 Thu, 18 Feb 2010 00:28:31 +0000 admin 16@http://www.finditflipitforum.com/ <p>Use only sold comparables. Homes that are active and pending are interesting to keep track of but are no value to you in calculating a value</p> <p>The sold date needs to be within six months</p> <p>The DOM (Days On Market) should be 90 days or less</p> <p>Comparables need to be in close proximity to your subject property. Close proximity means less than half a mile in any direction. Houses on the same street are best. Houses on the other side of a highway or a waterway are of no value so you should not use them.</p> <p>Number of bedrooms needs to be the same</p> <p>Number of bathrooms needs to be the same</p> <p>Living Area Square Feet needs to be close to your subject property. Note: square feet under air, square feet under a/c, square feet under heat, or any other similar terms are all the same.</p> <p>Subjects under 1000 square feet – comps should be within 100 square feet</p> <p>Subjects 1001 square feet – 1500 square feet – comps should be within 150 square feet</p> <p>Subjects 1501 square feet – 2500 square feet – comps should be within 200 square feet</p> <p>Subjects over 2501 square feet – comps should be within 300 square feet</p> <p>The year built needs to be within three years of your subject property – this means your comps may be three years older or newer than your subject property. For properties 75 years or older you can raise the limit to five years</p> <p>House style needs to be similar – if your subject property is a rancher than your comps need to be ranchers too and not a brick home.</p> <p>Lot size needs to be similar but lot type must be the same</p> <p>The amenities needs to be similar – if your subject property has a pool then your comps need to have a pool as well.</p> <p>Condition needs to be similar – was your comp in repaired condition, or was it a fixer upper when it was sold? </p> http://www.finditflipitforum.com/topic.php?id=15#post-15 Wed, 17 Feb 2010 18:47:00 +0000 admin 15@http://www.finditflipitforum.com/ <p>To Know if you have a good deal you can wholesale follow this checklist: </p> <p>Can you buy the property for a minimum 30% under value (preferably 40% or more) ? Determine Minimum Value with comparables.</p> <p>Is the property a single family home, duplex, or triplex? It cannot be a commercial property, land ( you can wholesale land but this forum is not focusing on that niche) or a pre-construction project. Apartments have home owner's associations that are too complicated to deal with for wholesaling.</p> <p>Is the property in a residential area? It cannot be located next to businesses, the airport, or any commercial structure. It needs to be a house somebody would want to buy, otherwise you will never flip your contract, or make any money, even if you have found the best deal ever.</p> <p>Is the owner motivated to sell and/or facing financial difficulties? Don't take advantage of anyone who has backed themselves into a financial problem, but present yourself as a problem solver.</p> <p>Is the property deeded? Non-deeded properties will lose value over time and no investor will be interested in buying your deal.</p> <p>Can you do an inspection of the property before putting it under contract?</p> <p>Can you get an agreement done that leaves you adequate time for closing? (as you are starting out you want to give yourself at least 30 days, but as you get more confident and have more buyers in your buyer list you can make your offer more attractive by offering a faster closing)</p> <p>Are the repairs less than 20% of the market value of the property, in it's repaired condition?</p> <p>Will the repairs take less than six weeks to complete?</p> <p>Do you have a written bid from a professional for repairs?</p> <p>Are comparables in the neighborhood selling in 90 days or less?</p> <p>Would you live in the neighborhood?</p> <p>Is it worth it for an investor to buy this property, fix it up and try to sell it, or rent it out? </p> http://www.finditflipitforum.com/topic.php?id=14#post-14 Wed, 17 Feb 2010 00:23:18 +0000 admin 14@http://www.finditflipitforum.com/ <p>The only way to find a buyer for your wholesale deals is to know if they are really a buyer or just a player.</p> <p>To know if they are really a buyer you are going to have to do some research to find out if they have bought the type of property you have under contract to flip in the last 6 months, within a tiny radius of distance of your subject property and if this a second house they have purchased (ie not their primary residence, so they bought it as an investment) </p> <p>The best source for researching this is again <a href="http://www.listsource.com" rel="nofollow">http://www.listsource.com</a> </p> http://www.finditflipitforum.com/topic.php?id=13#post-13 Tue, 09 Feb 2010 22:50:42 +0000 admin 13@http://www.finditflipitforum.com/ <p>The best resource for free foreclosures is <a href="http://www.emailforeclosures.com" rel="nofollow">http://www.emailforeclosures.com</a> </p> http://www.finditflipitforum.com/topic.php?id=12#post-12 Tue, 09 Feb 2010 22:48:36 +0000 admin 12@http://www.finditflipitforum.com/ <p>Landlords are an invaluable source for leads because they are definitely tired of dealing with their tenants! </p> <p>Landlords may have a vacant house. </p> <p>Vacant properties can be gold mines, but it may be a challenge to locate the owners.</p> <p>Vacant properties are great because the owners will likely sell for any price! </p> http://www.finditflipitforum.com/topic.php?id=11#post-11 Tue, 09 Feb 2010 22:44:53 +0000 admin 11@http://www.finditflipitforum.com/ <p>The Benefits of FSBO (For Sale By Owner) : </p> <p>1. You can deal directly with the owner - no dealing with professionals. This is great if you are new to the business!</p> <p>2. Most FSBOs are not well advertised</p> <p>3. Owners may not know the value of their property and be asking much less than it is worth</p> <p>The Disadvantages: </p> <p>1. Owners may not know the value of their property and be asking much more than it is worth</p> <p>2. The Owners may not be highly motivated </p> http://www.finditflipitforum.com/topic.php?id=10#post-10 Tue, 09 Feb 2010 22:40:36 +0000 admin 10@http://www.finditflipitforum.com/ <p>The only way to know the After Repaired Value of a potential property you may buy is to know what similiar properties (comps) have sold for. Not what they are listed for, but what someone has actually paid for them in the past few months (no more than 3-4)</p> <p>We recommend <a href="http://www.realquest.com" rel="nofollow">http://www.realquest.com</a> for running comparable sales reports </p> http://www.finditflipitforum.com/topic.php?id=9#post-9 Tue, 09 Feb 2010 22:15:07 +0000 admin 9@http://www.finditflipitforum.com/ <p>Having a good relationship with a probate attorney can be a great way to get to leads before anyone else finds out about them. </p> http://www.finditflipitforum.com/topic.php?id=8#post-8 Tue, 09 Feb 2010 22:09:23 +0000 admin 8@http://www.finditflipitforum.com/ <p>Probate records (Death records) are a valuable source of motivated seller leads for you. </p> <p>When someone dies, often if they own their house they will leave it to a loved one.</p> <p>The person who inherits the property may be more interested in cash rather than an old house, especially if the house is out of state and when they find out there are a hold load of taxes and fees involved with inheriting their parents' house.</p> <p>Most times these houses will have 100% equity/ no mortgage to pay off! </p> http://www.finditflipitforum.com/topic.php?id=7#post-7 Tue, 09 Feb 2010 21:45:49 +0000 admin 7@http://www.finditflipitforum.com/ <p>The absolute best way to locate properties to buy for you to wholesale is mailing out postcards. You will make a "We Buy Houses" postcard and mail them to a list of house seller leads you have made up.</p> <p>The best source to make a list of leads is <a href="http://www.listsource.com" rel="nofollow">http://www.listsource.com</a></p> <p>The revolutionary new way to send mail is <a href="http://www.click2mail.com" rel="nofollow">http://www.click2mail.com</a> - you will make your postcard online, and then you can mail it with only a few clicks of your mouse!</p> <p>You can mail out 200 postcards for under $100.</p> <p>It is possible to easily get a return of as high as eight percent mailing out "We Buy Houses" postcards, so for under $100 you can get as many as sixteen solid, solid leads! All you have to do is call them back and make an offer! </p> http://www.finditflipitforum.com/topic.php?id=6#post-6 Tue, 09 Feb 2010 21:09:57 +0000 admin 6@http://www.finditflipitforum.com/ <p>Make yourself some business cards and start handing them out! Drop them off at high traffic businesses - most should allow you to do so.</p> <p>Hire some bird dogs to work for you. A bird dog is someone who will go out and do the dirty work and find you a great house to buy. They will do all the research to find potential houses, they might do marketing for you and they will deal with the sellers for you. You will pay them $500 (or whatever you decide) for their work if a property they refer to you ends up in a deal with you buying the house, or you could instead pay them $10 or $20 for any lead. It's up to you and you can be flexible. You want to build relationships in your real estate career - your birddog may one day become a partner in a profitable Joint Venture deal, so treat them right!</p> <p>Just make sure you check over the laws in your state about this (paying for information/leads) </p> http://www.finditflipitforum.com/topic.php?id=5#post-5 Tue, 09 Feb 2010 20:57:25 +0000 admin 5@http://www.finditflipitforum.com/ <p>Running newspaper ads in the local free weekly papers is a good way to get started with newspaper ads.</p> <p>Sample ads to use could be: </p> <p>We Buy Houses! Cash Buyers, High Prices<br /> Call Today 1-800-CASHBUYER123</p> <p>We Buy Fixeruppers!!<br /> Any Condition OK</p> <p>I Buy Ugly Houses!</p> <p>Avoid Foreclosure, We Pay Cash<br /> Walk Away Today, High Price Paid </p> http://www.finditflipitforum.com/topic.php?id=4#post-4 Tue, 09 Feb 2010 20:36:54 +0000 admin 4@http://www.finditflipitforum.com/ <p>The type of property you want to wholesale is existing single family homes, duplexes or triplexes, that are deeded. Apartments are too complicated to deal with due to the associations, and you do not want to wholesale a commercial property.</p> <p>Non-deeded properties will depreciate over time. </p> <p>In our experience there are always more buyers in the middle price range, so make sure to target middle class family homes, in a decent neighborhood; an investor will not buy a property, even if it's a great deal, in a bad neighborhood or if the home is near businesses or any commercial property. </p> http://www.finditflipitforum.com/topic.php?id=3#post-3 Tue, 09 Feb 2010 19:33:55 +0000 admin 3@http://www.finditflipitforum.com/ <p>When you are looking for a property to buy to wholesale it is important to find a seller who is motivated to sell. If your seller is not motivated you may never get a deal done and give up on wholesaling.</p> <p>Seller motivation for wholesaling can be:</p> <p>The number one motivation for sellers is they've been a landlord for a long time and they are simply tired of the hassle. Your number one focus should be landlords.</p> <p>Job Transfer</p> <p>Loss of Job or Business Failure</p> <p>Moving out of the Area</p> <p>Medical Bills/ Unexpected Illness</p> <p>Owners live out of state</p> <p>Inherited a Property</p> <p>Owners have already purchased their new dream home and are now making payments on two houses</p> <p>Owners are in any kind of financial difficulties for any reason.</p> <p>Owners can be motivated to sell, but you should know the main reasons for motivation for them to sell so you can now how to focus your efforts on finding a property to wholesale, especially if it is your all important first house you will wholesale. </p> http://www.finditflipitforum.com/topic.php?id=2#post-2 Tue, 09 Feb 2010 19:15:19 +0000 admin 2@http://www.finditflipitforum.com/ <p>A great wholesaling resource to use in conjunction with this forum is Cris Chico's <a href="http://www.1shoppingcart.com/app/?af=1133789">VirtualWholesaling.com</a> study course! </p>