How To Flip A House

Here are the three big myths in real estate and the truth behind these myths to shed light to the clouded ideas of many.

1st myth

There are no motivated sellers anymore. The economy is going down and nobody bites to quick selling because they would always want to generate income in whatever move they make.

I think this one gets a lot of people because it is indeed true that the economy is in for a twirl. However, ask anybody in real estate how they are doing and you would think they are living in another economic world. Just recently when I was in a football match, I happened to talk to people working in real estate companies. When I asked them how many deals they were closing, I was surprised with what I heard. My ears were already preparing for lamenting words, however, one told me he was closing 10 houses in one month and the other is 12. Imagine: 22 deals and that is just for the two of them. You can still buy houses (and there are a lot of them) to be rehabbed. People are relocating, undergoing divorce and the last thing they need is a house to bother them. All you need is to look for the right house in the right area with the right motivation.

2nd myth

Second is that there are no deals out there anymore. There is no financing for people. There is no money and there is nothing people can do. It’s just that you can’t put buyers in the house like you used to.

A lot of people are concerned with getting rid of the houses once it is put into contract. But there is really nothing to be worried about. Just one mortgage broker can attest that he will be closing 20 houses this month with 17 of them going in the same type of financing and he is getting as low as 495 scores put through. These alone will show you that there are a lot of deals and people are still willing to finance.

3rd myth

I have not got a lot of money to buy houses. So, I can’t do my stuff in real estate.

With as little as 10 dollars, through wholesaling houses you can make a zero risk move with 5-10 thousand dollars gain just as long as you do the sell within the auction period. So, in wholesaling you can make a lot of money without having to use a lot of money so long as you know what and how to do things.

In whatever you do, there will be a lot of discouraging words that you would hear. But do not let those words bring your hopes down. Do not let other people ruin your plans because they said things are bad. See it for yourself or if you have a lot to lose, go to the people who are really in the playing field and ask them for yourself if things are really that bad. And only when you experience it or you hear from credible people, that’s the time you back down.

About the author:

Terry Wygal also known as The Quick House Buyer, has been teaching real estate investors how to wholesale and flip houses for several years now. Terry also teaches real estate investors how put your website on the front page of google and crush your competition.

• The playing field
  • Determine whether you are in a bust or lean period. Buying a house in the bust period when the prices are high is not a good move because this means you will be paying way too much for a house. On the other hand, buying in a lean period, though your financial status may also be lean, would equate to higher profits because houses at these times would be much cheaper. So be sensitive with how the real estate market is fairing and hit the right button at the right time.
  • Also, you should know how houses are priced in your area. Of course, your house does not have a replica somewhere being sold. However, looking for houses that are similar with yours would give you a fair idea of how much your kind of houses are priced. This will also give you an idea about the competition, so you will be able to know how you are fairing with others, thus you will be able to adjust with what you are missing and exploit your advantages.
• What you need to spend on
  • You should be able to estimate all the money that you will spending - from taxes to secondary costs - monthly fees, repairs, notary, escrow fee, title insurance. Remember, in real estate the spending does not end after you bought the house. In fact, you are just getting started. So make sure that all the expenses that you will be having should be included in the plan. Failure to do so would most likely result to a losing deal.

• Know different types of mortgages
  • Knowing the different types of mortgages (which, by the way, could come in different forms and sizes) would help you determine how you are going to plan your flipping or wholesaling. Just make sure that with whatever mortgage you are having it will compliment the selling strategy you intent to use.
• House repairs
  • Houses that need more repairs would naturally cost lower. So, if you are willing to spend on repairs, then you buy a house that falls under this category. However, what you need to put into mind is that all you repair expenses should convert to profit. Meaning, whatever add-ons you include in the house or whatever fixing you do, it should add to the profit that you expect to get.
• Dealing directly
  • Especially if you already know what you are doing and you have marketing confidence, doing the deal yourself would save you from spending on commissions for people who did the deal for you. If you are still starting, you can ask a real estate agent to do the dealing for you. However, make sure that you learn how the agents does it so that in the future you can do the dealing yourself and not spend on front men anymore.
• Negotiate price
  • When you buy a house, do not hesitate to ask for discounts. Always start your offer at the lowest reasonable price that you could give. Do not make your offer to low because if will offend your seller nor too high because your deal will be a failure even before it started. Research, again, plays a big role in making an offer and closing a deal when buying houses. So make sure you do your homework before you start price dropping.

About the Author:

Terry Wygal also known as The Quick House Buyer, has been teaching real estate investors how to wholesale and flip houses for several years now. Terry also teaches real estate investors how put your website on the front page of google and crush your competition.

Strategic financial planning

Make sure that you have the financial resources you need and you should be very specific with what you are going to do with the house that you have. Whether you want to have it rented to have a nice annuity after it is paid off or you want to have house flipping, make sure that your financial resources would be able to sustain whatever you choose.

Knowing when to ask professional assistance

There are things that you can already do on your own and there are also things that you need to ask assistance. In choosing which belongs to which, what you need to put in mind is that if ever you are going to do it or ask somebody to do it, it would generate the best result. Lets say the plumbing needs to be fixed. If you have skill for plumbing, then you do not need to ask a plumber to do it for you. In this case, you saved money by not spending on fixing the plumbing. On the other hand, there are just some things that you have to ask assistance from experts. This includes asking help from real estate agents to find buyers who would give you the best deal there is, lawyers to do the paperwork and real estate advisors to avoid future problems in terms of legalities.

The best thing that you can do for this one, even before you start doing real estate is to have all your skills in check, whether you are flipping or wholesaling houses, so that you will know which you can do and which you can’t. Also, learn from people you hire on how they do their expertise so that in the future, you can do it on your own without anticipating for bad results

Market trend orientation

Real estate is a big tank full of competition - you swim in competition, you breathe competition and you deal with competition. You need to know the market and you need to know how it was doing and it is doing and predict how it will be doing for you to always have you best foot forward. What constitutes the ability to naturally predict market trends is experience, but it does not mean that newbies can’t do this anymore. Loads of research of home prices trend in newspapers, classified ads, homes that are similar to what you are selling and even bank payments would help newbies get a fair idea of what the real estate market is.

Invest for profit

And lastly, the be all and end all of all business ventures, make sure that whatever step you take, it will always sum up to the profit you deserve. However, do not let greed get in to you and push you to pull some dirty tricks from your sleeves. All you need to do is be able to make sane and reasonable decisions that are carefully thought of and planned.

These basic ideas in the real estate business would save you from making losses instead of profit. Real estate is a cut throat business. Competition is stiff, everybody know what they are supposed to do, and everybody wants to get the best deal there is even to the extent of pushing someone to get all the loses. And more often than not, those who get all the loses are those people who ventured in real estate without realizing what they should and should not do. For budding real estate investors, in order to survive, you have to know the things to improve your real estate skills.

About the Author:

Terry Wygal also known as The Quick House Buyer, has been teaching real estate investors how to wholesale and flip houses for several years now. Terry also teaches real estate investors how put your website on the front page of google and crush your competition.

When you try to do wholesaling, it is best that you have everything properly laid out. That means that you have all what you need and you know what needs to be done.

Where

You should start off by picking a certain place that you want to do the wholesaling. You must study the place and know the common questions that prospect buyers ask. This will help you scrutinize where it is not good to make an investment and where is a good place to do your wholesaling houses business. Once you choose a place, you should expect to be going there every now and then, so also make sure that the place you choose is accessible for your part.

What

Another question that you should be concerned with is knowing what to investment in. You should know which deals can bring in profit and which ones don’t. Factors that could affect your decision, among others, include the prevailing economic situation of the place and the (ARV)after repair value. In choosing a deal, you should make sure that the house you get does not need too many repairs neither should it be too expensive in relation to the economic situation that the place is experiencing.

How Much

You should know how to price the property you are buying and also the property that you are selling. This could be difficult for first-timers because nobody really knows how much a house is worth if they do not have any idea how to identify the factors that they should use to determine the price. This is the most important factor that could determine a make or break in your wholesale. Aside from the ARV (after repair value), you can also make use of the pricing that you have done before for a similar purchase or pricing that people have for a similar deal.

Who

Aside from choosing what to buy, you should also have your own set of buyer’s list. It could also help if you already know the buying pattern of the buyers that you have in your buyer’s list so that when you try to buy a property, you already know to whom it would be most likely of interest. Of course, this is not a guarantee but it also helps in choosing houses that are easy to sell. In most cases, investors are very willing to be included in your buyer’s list because it is also their way of getting prospects, like instead of doing the searching of good deals, other people can do it for them by just having themselves included in wholesaler’s buyer’s list.

In order to have proper wholesaling training, you need to develop a wholesaler’s mind in determining a good deal, appropriate value and the right people to buy from and sell to. The best part in wholesaling is that the more you do it, the better you become and the more money you get.

Terry Wygal also known as The Quick House Buyer, has been teaching real estate investors how to wholesale and flip houses for several years now. Terry also teaches real estate investors how put your website on the front page of google and crush your competition.

Learning how to wholesale houses is not an easy feat, but a basic understanding of the what’s and how’s would give you a good kick. Wholesaling houses is usually preferred by people who do not want too much fuss in selling houses - that is, unlike house flipping where you have to fix the house before you sell it, wholesaling saves you the trouble of remodeling expenses and just go directly to the sell.

As easy as it may sound, the catch here is how does one purchase something and sell it right away and profit from it when nothing is done to make what is being sold very competitive in the market? To understand how wholesaling houses works, here are some of the things that happens in house wholesaling.

One - You find a motivated seller (a.k.a somebody who is so willing to let go of their house and would agree to have the house sold for a much lesser price). Let’s say, the owner is relocating and wants to dispose of the old house but got no time to do it. So here you come in and offer to buy the house. Originally, the house can be sold in the market for $150,000. However, you offer to buy it for $70,000 dollars. The owner might try to negotiate for a much bigger price. It’s okay as long as you do not make it too much that you can’t sell it any more to somebody else and that the house is not too much in a bad condition.

Two - Now, you got a $150,000 house that you bough for $70, 000. You have something to sell, the next thing that you need is somebody interested to buy it. In this case, you could sell the house for $80,000. A lot of prospect buyers would be very interested to get their hands on this property, even if they have to do some minor repairs to it.

Three - When you do this wholesaling houses, be very particular with the the duration between the buy and the sell. Do not keep the property too long or you will end up spending for it. The best way to do this, if you can, is to be able to do the buy and sell in a margin of hours or a day. In this way you will save yourself the trouble of having to worry spending on what you thought to be of a good, expense-free investment and be able to earn much in a course of one day.

There are still more tricks of the trade that you need to learn about wholesaling houses but these simple 1-2-3 how to’s can help you get started.

Terry Wygal also known as The Quick House Buyer, has been teaching real estate investors how to wholesale and flip houses for several years now. Terry also teaches real estate investors how put your website on the front page of google and crush your competition.