FLIP for CASH by understanding the numbers first.
We talked about this in an early blog. Ok, let’s assume you have done your homework and the numbers work, now you’re ready to buy. What is the best strategy? Well let’s talk about one at a time.
First let’s talk Flips.
Flipping property is very popular for many investors. This simply means buying a property and then selling in a short period of time. Usually the goal is to resale in 60 days or less. Some people try mixing with a different style of investing. For example, buying ugly doing some fix up and reselling in two to four months.
I’m going just to address what I call pure flips, turning <60days.
The best time to execute this strategy is in a raising market and finding properties being sold at 10% to 30% below market. This is becoming increasing difficult to accomplish. Many Lenders have established rules to prevent and/or limit investor ability to execute flips.
I believe property flipping is becoming a thing of the past. Lenders are and will become stricter with the flip rules. Many investors have done very well and many are finding it very difficult in today market to be successful.
The highbred flip of buying ugly, repairing and selling, have been much more successful and we are seeing less issues finding financing. Unless you’re willing to provide seller financing and then you can chose who you grant credit too.
When you purchase make sure you cover all the bases. This is where a good team is critical. Your Realtor, Mortgage Specialist and Title/Escrow specialist will be key to a smooth and profitable process.
For more information on investing visit www.MarkWatterson.com or call me 815-0411