We also try to find a phone number for each owner. You have to mail repeatedly and hope that when they are ready to sell, you're mailer was recently delivered and they act on it. We send a letter to these addresses, usually every 6 - 8 weeks, asking if they're interested in selling. You must also specify your desired zip codes. All of this information is available through list sellers. I buy lists of houses/owners that have specific criteria, including how long they've lived in the house, how old the house is, how much equity is in the house, the age of the house, etc. Houses that are already on the market will not usually be good deals for a house flipper. These houses are typically not listed for sale, so you cannot look with a Realtor or on. It may take several months to convince the owner to sell, so you should always have a pipeline of houses you're working on (to earn a living). The market is competitive, so you must always be looking. A Day In The LifeĮvery day, I search for new opportunities to buy a house. The difference between what I sell it for, less selling costs, buying costs, carrying costs, and renovation costs, equals my profit. Once complete, then the property is put on the market and sold. You do not want to over or under improve. The scope of the renovations depend upon the price of the house and the other houses in the neighborhood. Once I make a deal, I close on the property and make the budgeted renovations. Because you can never be certain of the exact expenses, you have to build in a cushion for unknown expenses and time. I have to buy at a price where I can make all of the necessary improvements, cover carrying costs of taxes, insurance, utilities, etc., and still make a decent profit for the time spent. I contact owners, and see if they're willing to sell to me. Examples are divorce, death in the family, inheritance, or pending foreclosure. The house may be in disrepair, totally outdated, have a leaking roof, or something that requires a substantial investment of money. Either the owner or the house usually has some type of distress. I am looking for houses I can buy at approximately 65% of the market value, or less. These houses are usually not currently for sale. I search for houses with very specific criteria, in specific market areas. There are usually a LOT more expenses of carrying a property and unless you're a larger company, you also cannot get their pricing for labor and materials. They show gross profit, if they show anything. Nor are the profits like they lead you to believe. There are some similarities and there is definitely drama, but never does it go as smoothly as shown on TV. People often think it's like the TV shows on house flipping.
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