Flip Foreclosures by Fixing | Flipping them.
Flip Foreclosures by Fixing | Flipping them. Part of 'Highly Effective Investing Tips'
By Jeff Knize, CRA, ICAP member
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!
============================================= To Profit From A Find/Fix/Flip We Need To:
1st - Find a property. 2nd - Fix the property. 3rd - Flip the property. =============================================
Don't be overly concerned with the competition buying real estate foreclosures. Sure there will be competition but there is in all businesses!
You have probably seen more and more paid programming tv shows about flipping properties. For Example, 'Flip This House' & 'Property Ladder'are about new and seasoned investors attempting to flip foreclosures for a profit.
I must say there have been more people coming into the market attempting to flip properties 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 Foreclosures By Fixing | Flipping
After purchasing a property, there are a couple of ways to go about fixing and flipping the property.
1) Delegate all the repairs, doing little or none of the work on your own.
2) Complete some repairs on your own and eliminate potentially high contractor costs.
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.
You can read more about this topic and other useful topics in my Foreclosures and Flips manual.
Jeff Knize, CRA, ICAP member
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