OfflineA few weeks ago I got a phone call from a guy looking to rent a house. As I started to talked to him it sounded like he had a good job. I didn't have anything available to rent him at the time but, I never let an opportunity pass me by. I asked him "why don't you buy a house instead of rent?" He said "I just went through a divorce and now the bank will only qualify me to buy a house for $100,000. I looked at houses at that max price and couldn't find anything I like so I have decided to rent." Then I asked "What price range of a house do you like?" He said he liked houses at the $130,000 price range. What I did next was monumental. I asked him "what if I could find you a $130,000 house for $98,000, would you buy it?" He said "Yes!". So all I did was have my real estate agent start searching for $130,000 houses that seemed priced low and then I would offer a low price and try to buy a house well below value. I ended up getting a house locked up for $48,000 it needs a few things done to it which will add up to about $20,000, then I am selling it to him for $98,000. After expenses and commisions I will make about $25,000 in a 2 week period. Not a bad profit! The main idea here is this. When you are going to flip a house in this market-have your buyer "pre-buy" the house for a locked in profit. That way you aren't sitting on a house that you hope will sell eventually. Also, keep your eyes open for opportunity. Right now there is opportunity everywhere because of the market conditions. Get it done!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
I totally agree that one should line up the buyer BEFORE buying a house to flip. Been trying to do that but have not found a buyer or investor yet.
Nick
It's amazing that you run into the right people and that you are able to help them solve a problem and make a profit. Great Job on this.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Matt
How do you get him to pre buy in a situation like this? Do you have him sign a Option To Purchase Contract then you start finding his perfect house at the price he wants? I am trying to figure this part of it out. LOL!
Sissy
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
nice going guy,that`s thinking on your toes!!! got a question.Did you actually close on it and then sell.or assign it to him ?? And do the banks accept the assign,since most like the owner to have seasoning???
well actually that`s two questions, but just want to learn from the Masters.
Keep posting cbr,we keep learning
God Bless!!
grandpa
........like sistreat said can you please eloborate on how to the buyer to pre-buy?
Wayne
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker
Have your buyer sign a purchase agreement, make sure they have been pre-qualified by a bank, and take a non-refundable earnest money deposit.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
this wasn't an assignment. I actually closed on this property.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
You are unbelievable cbrpower. It is deals like yours that give me the confidence that i can really do this. I get alot of flak from a co worker that i told what i plan on doing.He says im dreaming and have been scammed. I can't wait to show him my first check soon.
thanks. Richie.
Yes everyone laughed at me also. When I started 3 years ago I tried to get a few of my friends interested in real estate. Every one of them said "We want to see how you do first". What they were really saying is "we don't think you can do it". They also said "I don't need real estate, I am doing pretty good financially because I have a good job." Now they are afraid because of the economy and they are coming back to me begging me to teach them. Don't listen to anyone else. Just run for your dreams. Get it done!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
I am working with a new real estate agent, who has plenty of experience in foreclosures. I am currently bidding on a property that is a foreclosure and is on the market about a year. Lender very willing to sell. Was asking $142,000 at first, dropped to $138,000. I am looking for the property to rent or "a least to buy". the house is a 2 bedroom cottage about 580sq. on 3/4 of an acre.
I am looking for the property(location, location, location.) demo the house, set new manufacture home on existing foundation. Asking price- $138,000
first bid 80,000
no counter as of yet from lender
I am willing to counter to 90,000 with concession at closing. I think if I get this property for under $100,000 will be good deal. New 3 bedroom, 2 baths, with all appliances...$80,000 set on foundation, with a little additional work to complete. Comp. houses are from $440,000 to $580,000......Possible rent would be $1,200 to $1,400 a month. My question is on financing. Should I counter to lowest price or take there next counter and make deal for concession to pay for closing costs, so called repairs on house and to fund the demo and down payment of new house? For new house, do I go for the construction loan and roll it all later into mortgage? Has anyone bought property and rebuild rather than flip a house for small repairs?