I would like to use foreclosed properties for flipping, any suggestions?

Asked by Fix4u, Jamaica, Queens, NY Sun Aug 16, 2009

Help the community by answering this question:

+ web reference
Web reference:

Answers

6
Leasing To O…, , Dallas, TX
Thu Aug 20, 2009
Hey there Fix....

The basic strategy, besides location, location, location....is that you as an Investor you should look at it this way..........You make money when you buy...not when you sell. What is your exit strategy? If the numbers don't work when doing your due diligence, then you may not want to buy.

You have these basic situations and exit strategies:
Buy.....Fix.....Sell for Cash on the retail market (at a good price)
Buy.....Fix.....Keep it and Rent for cashflow
Buy.....Fix.....Sell as a Lease Purchase with good terms
Buy.....Fix.....Wholesale deal to another person
Option property.....Fix.....Sell or wholesale deal

Darin
Web Reference:  http://www.hhiinvesting.com
1 vote
Nunzio Zappo…, Agent, Easthampton, MA
Sun Aug 16, 2009
Location, Location, Location. If nothing else you need to be in a good location. Research the area and find a home in an area that will be the first to become more desired when things start to turn. Foreclosures are tough because you need to know you are buying as is, you may need to check local zone and violations on the home to make sure you complie and can get CO's getting in to foreclosures is not hard getting out could be. So location is important. You should know how much the area is selling for currently and caculate the cost of repairs into purchase price and make sure you are still under the lowest priced home in the area. Than you know you have a profitable flip on your hands. It is not an easy money process it could be stressful but it could be very rewarding if approached correctly.
1 vote
Bhupinder Si…, , Queens, NY
Mon Nov 22, 2010
give me a call and set up meeting so i will work with you, my phone is 718-406-5005.......singh
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Aug 20, 2009
Why not consider any old handyman special it could turn out to be a better bargain than some foreclosures out there. Choose any location you are familiar with, start looking and take it from there--if you haven't already done so and will need a mortgage visit any local qualified loan officer and see exactly what your budget can handle and take it from there.
0 votes
Ralph Windsc…, Agent, Hauppauge, NY
Mon Aug 17, 2009
Foreclosures are not always bargains. On the contrary, with falling prices, many foreclosures are not worth what the banks are seeking for them. Each deal has to be evaluated very closely to ensure that you're getting the house/property for the right price. You may have to look at 25 or more homes before you find one that is worth making the investment on. If you're buying with credit rather than cash, you also have to figure closing costs and the length of time you will be holding the property. You need to find a realtor that you can trust, hire that realtor to represent you as a buyer's agent, then let that agent find several properties to review. Don't jump the gun. Being over anxious can put you in a bad position.

Ralph Windschuh
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties.com
0 votes
Voices Member, , Benton County, OR
Sun Aug 16, 2009
Fix4u,

I think Nunzio has covered the main concern well... Make sure you are putting something back on the Market that will sell. (Need buyers for that) His other points about permits, zoning, CO's ect.. are also things you absolutely need to be sure of as they all can make or break what you will be attempting.

Nice job Nuzio

Good luck Fix4u
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more