If you are new to Real Estate Investing, you might be wondering about the effective ways of finding deals. Similarly, suppose you are already starting with the real estate industry. In that case, it’s still challenging to find more deals than you could ever do and perhaps even more challenging to devise a better game plan for your real estate business. Fixing and flipping properties is one of the most common yet effective investment strategies in real estate investing. However, it is not easy to consistently find deals out there. It’s good to be refreshed with the basic principles of fixing and flipping to maximize the benefits you can reap with this strategy.
Fix-and-Flip Defined
Fix-and-Flip is how a property is purchased, then fixing it by applying repairs and making sure that the property is restored to its original condition and refurbishing it to create a profit by selling it for a higher price. House flipping is very suitable for houses in all ranges, from immensely distressed to the slightly used ones.
# 1. Look on the lists; Check the deals listed from on-market lists
You can start finding deals from different Multiple Listing Services (MLS) by subscribing to them. They’re the most accessible means for finding deals since these services are updated all the time.
You can also check deals listed on FSBO (For Sale By Owner). Usually, the people who post deals from FSBO don’t want to pay an agent, so that’s why they have deals that are much cheaper because they want to get the best value for their property without the help of an agent. You can usually find them on sites such as Zillow, Truila, Redfin, or Realtor.com
# 2. Find the rare treasures; look out for off-market properties
You can go ahead and start knocking on different neighborhoods and doing some marketing by going directly to a seller. This is done by making your sourcing of deals by going around areas and checking any potential motivated sellers or distressed properties.
You also set an unfair advantage by doing this since the deals you find here are not even listed in MLS. With that being said, off-market deals have limited competition since fewer people know about the deal, so it means that you have higher chances of getting that deal since there is only a limited pool of buyers interested in the property.
You should also check pocket listings from agents. These are considered inside offers or exclusive offers from agents that already agree with the seller but still haven’t put it up on the MLS just yet. Ensure that you have connections or relationships with different real estate agents by letting them know that you are looking for distressed properties. If you think about it, you’re taking advantage of your network and cut off the line to make sure you’re getting that deal straight from your agent.
# 3. Work smart; Let wholesalers find the deals for you
Wholesalers generally find distressed sellers for you. They basically find a seller for you, buy them, seal the deal in a contract, and sell it to you for a fee; then, they keep that fee as profit.
You can get deals from wholesalers easily. Since quantity is significant to them, you can expect that they got many deals to offer you. They spend a lot of time, effort, and money finding those deals for you.
With wholesalers finding the deals for you, you can focus on what you have to do, which is house flipping. You can just go on and grab those deals, then flip those houses, sell them at a higher price, then rinse and repeat. By working with them, you can allot your energy to flipping houses only, and you’re definitely working smart.
# 4. Do the referrals; Expand your network of connections
It’s crucial that you also get a lot of people to contact if you are looking for deals. Having a specific group of people to get in touch with definitely opens up more opportunities for you to flip more properties.
You can start building relationships by having a circle of friends or business acquaintances. There are a lot of groups out there, such as Business Network International (BNI), which lets you meet other business people and inform them that you are doing real estate business. It’s one way of finding people who might have inherited properties to sell, houses that are in disrepair, or owners who just need to get out.
You can also go to networking events or groups, including chambers and meetups, to meet up with people who might have contacts with potential sellers who own properties that can be flipped. You can refer to the Real Estate Investment Association (REIA) as well. It is a great place to find deals and find people to contact.
Always remember that being involved with the community and having a relationship with a lot of people will not only give you plenty of opportunities to get deals, but it will also strengthen your knowledge of the neighborhood where your properties are located and eventually expand your presence even more.
With these tips in mind, you are on the right track towards a lot of profit by fixing and flipping homes and letting your presence in the real estate industry be stronger than ever. Here at Real Estate IQ, we want to empower you by giving you resources such as webinars and tools to help you on your journey towards success. We got you covered!
Credits:
Luke Watkins is a real estate investor with mastery of fix-and-flip and wholesale deals. His experiences include working with some of the biggest residential flipping companies in the country with a monthly average of closing 20 to 30 deals. He also has a background in construction and property management; and has invested in Salt Lake City, Utah, Indianapolis, Indiana, Albuquerque, New Mexico, and now Dallas, Texas.
Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.
