Hey guys just wondering if anyone here has any experience doing wholesale flips? Thinking about getting started here in the Metro Atlanta area. Any advice?
Does anyone "flip" real estate anymore?
- Thread starter DiamondDeuce
- Start date
Yeah man; flippin' like the Ringling Bros. Circus is in town - get started NOW!!
I'm on to my 2nd this year and I'm looking at $110,000 gross. (I don't type K, I like to see the 000s...)
I prefer to fix and flip to pre-approved 1st time buyers rather then buy and sell wholesale to investors. I make $$ during the fix-up and at time of sale.
I'm on to my 2nd this year and I'm looking at $110,000 gross. (I don't type K, I like to see the 000s...)
I prefer to fix and flip to pre-approved 1st time buyers rather then buy and sell wholesale to investors. I make $$ during the fix-up and at time of sale.
Hey a nugga out. I'm trying to get my own thing popping off too. Do you need money to get started or are there grant's/loans or something I should be looking for. I'm trying to make a dollar out of 15 cents, if you know what I mean. But I know it's a hustla but I'm in the process of getting a team together, of contractors on the come up, they'll do the fixing and I'll handle the hustle part. But if anyone can help holla at me, like some books to read, where to find listings what ever is appreciated. I'm just a young cat, not trying to catch another case, the dope game ain't waht it used to be 
To keep it simple wholesaling is this process for investors starting out that have NO credit and NO money:
#1 You find an old house with alot of equity, that needs some repairs, in a livable neighberhood. say a house that is about 20 years old that needs $10,000 in reparis. Lets say you can buy the house for $50k. + $10K in repairs. But the house can sell for $100k.
#2 Ok now you have found the house and negotiated to buy the house from seller. YOU don NOT buy the house. YOU put a contract on the house saying you will pay the seller in say 45 days.
#3 You sell this CONTRACT to a real investor with deep pockets, who is able to make the $10k in repairs. So lets say you sell the contract for $55K. Its a win win situation for everyone. Seller gets $50k for their house. You get $5K for the contract. The rich real estate investor will get $35K profit once they fix up the house and sell it.
Plus you did all this with no money down and no credit.
So to keep it simple you are baisically finding good investment deals, placing them under contract, and then selling the contracts.
#1 You find an old house with alot of equity, that needs some repairs, in a livable neighberhood. say a house that is about 20 years old that needs $10,000 in reparis. Lets say you can buy the house for $50k. + $10K in repairs. But the house can sell for $100k.
#2 Ok now you have found the house and negotiated to buy the house from seller. YOU don NOT buy the house. YOU put a contract on the house saying you will pay the seller in say 45 days.
#3 You sell this CONTRACT to a real investor with deep pockets, who is able to make the $10k in repairs. So lets say you sell the contract for $55K. Its a win win situation for everyone. Seller gets $50k for their house. You get $5K for the contract. The rich real estate investor will get $35K profit once they fix up the house and sell it.
Plus you did all this with no money down and no credit.
So to keep it simple you are baisically finding good investment deals, placing them under contract, and then selling the contracts.
Ok i did this.
I have under contract now a 3 bedroom 1 bath residential in a minority area.
under contract for 40k homes in this area sell for around 80k. im redoing the kitchen and bathroom. brought the supplies from a salvage house. so i only paid 1500 for the cabinets and bathroom vanity.
now should i rent this out to section 8 then sell to an investor as a income producing property for 70k, or keep it as a income producing property.
3 bedrooms in south carolina rent for 600 to section 8. my mortgage payments on it would be 266. a month in mortgage and another $75 for insurance.
what do you think?
I have under contract now a 3 bedroom 1 bath residential in a minority area.
under contract for 40k homes in this area sell for around 80k. im redoing the kitchen and bathroom. brought the supplies from a salvage house. so i only paid 1500 for the cabinets and bathroom vanity.
now should i rent this out to section 8 then sell to an investor as a income producing property for 70k, or keep it as a income producing property.
3 bedrooms in south carolina rent for 600 to section 8. my mortgage payments on it would be 266. a month in mortgage and another $75 for insurance.
what do you think?
had a thought help me out with your opinions.
ok just purchased the house. My lender gave me 60k for the house due to an appraisal i got for 80k. so no money down and 18k in cash after fees of course. I on top of being a real estate agent am a license residential home builder. so i figure i enclose the garage and turn it into a den. its attached to the house (garage that is). right off the kitchen. put a white picket fence around it and a small patio in the back. should take about two weeks to do everything. than should kick the value up to 90k and ill spend about ten doing the work.
should i then sell to an investor for 80k at an appraised value of 100k which is what i can get the appraisal done for? ill still net 28k for the work.
what do you think?
ok just purchased the house. My lender gave me 60k for the house due to an appraisal i got for 80k. so no money down and 18k in cash after fees of course. I on top of being a real estate agent am a license residential home builder. so i figure i enclose the garage and turn it into a den. its attached to the house (garage that is). right off the kitchen. put a white picket fence around it and a small patio in the back. should take about two weeks to do everything. than should kick the value up to 90k and ill spend about ten doing the work.
should i then sell to an investor for 80k at an appraised value of 100k which is what i can get the appraisal done for? ill still net 28k for the work.
what do you think?
Always, Does nothing but help your business in the long run as long as you make the payments and don't miss a due date.
alright fellas lunch is on me when i come to ATL.
thanks to this thread i have officially made more money in this one month than i do usually all year.
heres the breakdown.
brought a house for 40k financed for 60k appraised at 80k pre-upgrade.
got 18k at closing.
took 10k of that 18k and renovated house. put in patio, redid kitchen, new cabinets and the such.
i think i spent more of that money on eating lunch and buying beer for my crew than anything else. remember 20k in equity already.
got new appraisal after i found HARDWOOD BRAZILIAN CHERRY WOOD FLOORS under that cheap ass apartment carpet.
new appraisal is 98k with the new windows and patio.
sold it a week later to a couple who were clients of my real estate office. READ FULL 7% commission on a house i own. total 103k with my commission from the sale.
53k in one month.
thanks a lot fellas.
thanks to this thread i have officially made more money in this one month than i do usually all year.
heres the breakdown.
brought a house for 40k financed for 60k appraised at 80k pre-upgrade.
got 18k at closing.
took 10k of that 18k and renovated house. put in patio, redid kitchen, new cabinets and the such.
i think i spent more of that money on eating lunch and buying beer for my crew than anything else. remember 20k in equity already.
got new appraisal after i found HARDWOOD BRAZILIAN CHERRY WOOD FLOORS under that cheap ass apartment carpet.
new appraisal is 98k with the new windows and patio.
sold it a week later to a couple who were clients of my real estate office. READ FULL 7% commission on a house i own. total 103k with my commission from the sale.
53k in one month.
thanks a lot fellas.
fatninja said:
shit. I'm in New England, so be a Patriot and come up here. Drive thru Philly and stop at Jim's at 4th & South Sts. Pick up some Philly cheese steaks with fried onions, mushrooms and Cheese Wiz! I'll have the beer cold & ready!
Yeah man, I'm into my 2nd flip this year. I'm not a licensed realtor; I make additional $$ paying myself weekly while I fix the property.
It's not too late to get started, y'all! Those adjustable notes from a few years back and the interest only loans are starting to go into default and the holders don't have an easy bankruptcy option anymore. The houses that go with the defaulted loans will be coming to the market right after!!
get your money right and be ready to pounce!
Good news! That's what I love to hear brothers making money. After reading this this thread (http://64.255.174.200/board/showthread.php?t=62210) I got my LLC started and I'm in the process of building up credit. My question is for the ATL cats that's doing this. What part of Atlanta is best for flipping?
I need to know where to find reo agents?
thanks fat. I'll look into that I guess the banks would be the place to start....
What about websites like http://www.realtytrac.com are they anygood?fatninja said:
in my opinion, anything thats posted on these websites is a waste of time.
if you dont have access to the mls (multiple listing service) your wastin your time.
talk to a local realtor and have him look for properties you want they will be able to put you onto deals that may or may not be listed yet.
if you dont have access to the mls (multiple listing service) your wastin your time.
talk to a local realtor and have him look for properties you want they will be able to put you onto deals that may or may not be listed yet.
well if your goin section 8, youre best bet is to prospect in the areas section 8 is known for. the communities that is.
then look for empty houses as most section 8 departments have more applicants than houses to rent.
i use to rent the houses in these areas, tell the owners i would do the repairs and maintenance, if i could get the house free for 2 months to do the repairs with a $100 security deposit, then lease with an option to buy for 3 years at a reduced rate. the rate hase to be at least $100 a month cheaper than section 8 pays. you will also need a sublet as sees fit clause in your contract so that you can sublease it with no problems. also have a clause that says at least 10% of all rents paid go towards closing costs.
this works and has a big advantage because the owner gets the rent without the headache. you get a 100 bucks a month every month on time and 2 months to get the property listed with section 8.
you interview the clients get in em the property and get paid in the process. This is one of the main reasons i got into the real estate game because its simple to make money without a whole lot of cash if you have a realtors license.
so for maybe a grand plus repairs which shouldnt be much you can pull 12k a year if you have ten houses with $100 a month cash flow.
in places like bmore where you have tons of row houses sitting empty that you can buy for 5k or 10k each then sell to single working mothers for 25k with minimal down payments and you hold the financing you can make some serious cash with little work over the course of 30 years or so. and if they default simply evict with the proper paperwork and sell again.
hope this helps ya some.
then look for empty houses as most section 8 departments have more applicants than houses to rent.
i use to rent the houses in these areas, tell the owners i would do the repairs and maintenance, if i could get the house free for 2 months to do the repairs with a $100 security deposit, then lease with an option to buy for 3 years at a reduced rate. the rate hase to be at least $100 a month cheaper than section 8 pays. you will also need a sublet as sees fit clause in your contract so that you can sublease it with no problems. also have a clause that says at least 10% of all rents paid go towards closing costs.
this works and has a big advantage because the owner gets the rent without the headache. you get a 100 bucks a month every month on time and 2 months to get the property listed with section 8.
you interview the clients get in em the property and get paid in the process. This is one of the main reasons i got into the real estate game because its simple to make money without a whole lot of cash if you have a realtors license.
so for maybe a grand plus repairs which shouldnt be much you can pull 12k a year if you have ten houses with $100 a month cash flow.
in places like bmore where you have tons of row houses sitting empty that you can buy for 5k or 10k each then sell to single working mothers for 25k with minimal down payments and you hold the financing you can make some serious cash with little work over the course of 30 years or so. and if they default simply evict with the proper paperwork and sell again.
hope this helps ya some.
fatninja said:
^^^ what do u mean u got 18k at closing??
(im sorry im new to this and have been trying to learn as much info as possible to get into the "flipping" business)
fatninja said:
ok but my question (more specifically) is really where did u get 18k from?? did u get 18k by... buying the house for 40k getting a bank loan (finance) for 60k and using that 20k (18k after broker & appraisal) to fix up the house? im sorry can u jus be more specific (im a no0b) thank u
also i have another question:
i really dont have $40k cash or own a house to take money out of. how would i go about getting a loan for enough money so that i could purchase a house and fix it up? i've heard of ppl doing this so i know its not fully impossible and i do have good credit but i am young so the bank will probably laugh at me.
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Yes to your first question.
your best bet on your second question is to look around neighboorhoods you know of and look for empty properties.
contact the owners and see if you can work a deal.
or
run this ad
real estate investor seeks
fixer up properties will look at all.
Name your price and ill name the terms.
call (803) Noob-guy
your best bet on your second question is to look around neighboorhoods you know of and look for empty properties.
contact the owners and see if you can work a deal.
or
run this ad
real estate investor seeks
fixer up properties will look at all.
Name your price and ill name the terms.
call (803) Noob-guy
fatninja said:
^^^^^ you are probably one of the most helpful people i've talked to in years!!!!!
ok ok s0o lets say i run that ad and then somebody calls me up and says "hey ill sell you my property for 50k". do i tell them lets write up a contract? and then do i run to the bank and say "hey i have a guaranteed money maker here, all i need is a loan for like 80k"??? how does it work?
i really dont know how to go about getting loans from a bank considering my age and me being broke as hell lol!!
luverluver-
You are asking for an entire seminar to be covered in a message board thread!!
I'll help here a little bit but you gotta do some investigating on your own.
You get a contract on the house belonging to the interested potential seller.
Basically you get the potential seller to agree to let you find someone else to buy the house for an agreed upon price. you get 30-60-90 days to do so. It works if the appraised value of the house is more than what is owed on it.
Example: a person owes $80K on their house and wants to sell for $90K. You get him to agree to pay for an appraisal in the contract in order to move things forward. The appraisal shows that it's actually worth $120K. Many people don't know the actual value of their houses in today's market.
You then find private investors to buy the house for $100 (you ever see those "We Buy Houses" signs?) so they can fix it up. The equity in the house is why the deal works for a private investor because they can fix it and sell it for $120 or more and make their $$ back plus.
You pay seller his $90K and you just made $10K with the deal done as is. If you had access to $$ you could fix and sell yourself for more. Use that $10K for another deal; don't go buy a 2007 Escalade designed by Deshaun Michaels!! (that's a lil' joke you may not get yet)
Are you doing any research besides reading here? Go to some of the links that have been posted in other threads to find info online or go to one of those seminars that travel around the country. It's not always about going to the bank for $$.
peace & good luck!
You are asking for an entire seminar to be covered in a message board thread!!
I'll help here a little bit but you gotta do some investigating on your own.
You get a contract on the house belonging to the interested potential seller.
Basically you get the potential seller to agree to let you find someone else to buy the house for an agreed upon price. you get 30-60-90 days to do so. It works if the appraised value of the house is more than what is owed on it.
Example: a person owes $80K on their house and wants to sell for $90K. You get him to agree to pay for an appraisal in the contract in order to move things forward. The appraisal shows that it's actually worth $120K. Many people don't know the actual value of their houses in today's market.
You then find private investors to buy the house for $100 (you ever see those "We Buy Houses" signs?) so they can fix it up. The equity in the house is why the deal works for a private investor because they can fix it and sell it for $120 or more and make their $$ back plus.
You pay seller his $90K and you just made $10K with the deal done as is. If you had access to $$ you could fix and sell yourself for more. Use that $10K for another deal; don't go buy a 2007 Escalade designed by Deshaun Michaels!! (that's a lil' joke you may not get yet)
Are you doing any research besides reading here? Go to some of the links that have been posted in other threads to find info online or go to one of those seminars that travel around the country. It's not always about going to the bank for $$.
peace & good luck!
1st off i'd like to thank you all for all the help. im sorry for becoming a nusiance. i am doing my own research actually. im in the real estate program in my college and i have this "property investment system" by Dr. Dolf de Roos. its very helpful and i will be putting my new skills to use soon.
the only reason i kept botherin yall is because i wanted to talk "face-2-face" with someone who actually does this. dont worry i got all the info i need thanks to yall. i'll be going out in the real world and applying my new knowledge. thank you fatninja & deptydawg!! im out for now ill keep yall updated later. peace
the only reason i kept botherin yall is because i wanted to talk "face-2-face" with someone who actually does this. dont worry i got all the info i need thanks to yall. i'll be going out in the real world and applying my new knowledge. thank you fatninja & deptydawg!! im out for now ill keep yall updated later. peace
not a problem & you're not a nuisance!
it just wasn't apparent what else you were doing.
check your PM-
it just wasn't apparent what else you were doing.
check your PM-
thanks i will check it out. im going 2 try and get a hold of my local MLS this week. and also put out that ad in the paper. i'll keep u updated