Flip: To take title to a property (buy it) then 'flip' the property within a short amount of time to someone else.
Flips are a sticky investor technique in the eyes of many lenders. (lenders like to see a minimum of 6-12 months title seasoning) You must steer your future buyers to lenders who understand and underwrite within flexible 'flip' guidlines.
For further clarity on lenders with flexible flip guidelines, speak with a mortgage broker.
Thanks! I ran a search earlier and only found discussions about flip and no-one said what it means. I guess most people on here are seasoned investors, LOL.
Flipping is when you buy or control a property for a short time with the intent of a quick sale. Rehabber's will buy a property and fix it up to sell it for a quick profit. This type of flip is usually a sale to another investor or new homeowner. A Dealer Flip is when you locate a property at a wholesale price (80% or less of appraisal value), then turn it over to an investor for a fee.
As a new person learning REI, I suggest you start with learning how to find wholesale properties to flip to investors. You will need to know how to negotiate the sale price with the owner, contract the property, and have a list of investors to submit your deals to. Start Here! Investors are always looking for deal properties and you can find their ads on bandit signs and in local discount papers. If you learn enough to contract a house at a good price, you are 1/3 the way to becoming a complete investor. Also you can make several thousand a moth doing this with no credit and little out of pocket expenses. One special note: Do learn to do this before calling investors. Investors want to know that you offer real deals. You can't just find a house that is listed for less than appraisal and say "Here you go!" Find out why the house is under market. Get the seller’s motivation. Are there any repairs? How much will it cost to fix them? Does the seller need all cash? Do you have pictures of the house (inside and out)? If there is no current appraisal, what are the COMPS for the property? Develop your system of gathering this type of data. Also, some investors only work with new homes. Others may work with 3/2/2 only. Create a profile for each investor you talk with. Don't send them properties they are not interested in.
Although there are many books and materials on how to find homes and negotiations, I think you should find a mentor. Join a local REI club. Network with investors. This business is people oriented so you have to talk to people. Don’t be so afraid to do nothing because you don’t know everything. Guess what, people will tell you what they want or what they are looking for. You will learn a lot just by stepping out the door and talking to sellers and investors.
Keep this in mind. There are many sellers in your area. If you make a mistake with one try it again. Who cares! Action will fund your reward in time. Trust me, once you do a few, you will have less mental stress about how to do it.
Quote:
On 2003-12-03 17:26, manganet wrote:
Flipping is when you buy or control a property for a short time with the intent of a quick sale. Rehabber's will buy a property and fix it up to sell it for a quick profit. This type of flip is usually a sale to another investor or new homeowner. A Dealer Flip is when you locate a property at a wholesale price (80% or less of appraisal value), then turn it over to an investor for a fee.
As a new person learning REI, I suggest you start with learning how to find wholesale properties to flip to investors. You will need to know how to negotiate the sale price with the owner, contract the property, and have a list of investors to submit your deals to. Start Here! Investors are always looking for deal properties and you can find their ads on bandit signs and in local discount papers. If you learn enough to contract a house at a good price, you are 1/3 the way to becoming a complete investor. Also you can make several thousand a moth doing this with no credit and little out of pocket expenses. One special note: Do learn to do this before calling investors. Investors want to know that you offer real deals. You can't just find a house that is listed for less than appraisal and say "Here you go!" Find out why the house is under market. Get the seller’s motivation. Are there any repairs? How much will it cost to fix them? Does the seller need all cash? Do you have pictures of the house (inside and out)? If there is no current appraisal, what are the COMPS for the property? Develop your system of gathering this type of data. Also, some investors only work with new homes. Others may work with 3/2/2 only. Create a profile for each investor you talk with. Don't send them properties they are not interested in.
Although there are many books and materials on how to find homes and negotiations, I think you should find a mentor. Join a local REI club. Network with investors. This business is people oriented so you have to talk to people. Don’t be so afraid to do nothing because you don’t know everything. Guess what, people will tell you what they want or what they are looking for. You will learn a lot just by stepping out the door and talking to sellers and investors.
Keep this in mind. There are many sellers in your area. If you make a mistake with one try it again. Who cares! Action will fund your reward in time. Trust me, once you do a few, you will have less mental stress about how to do it.
Hope this helps.
Nice post manganet. You don't sound like a newbie to me!
Quote:
On 2003-12-03 17:26, manganet wrote:
Flipping is when you buy or control a property for a short time with the intent of a quick sale. Rehabber's will buy a property and fix it up to sell it for a quick profit. This type of flip is usually a sale to another investor or new homeowner. A Dealer Flip is when you locate a property at a wholesale price (80% or less of appraisal value), then turn it over to an investor for a fee.
As a new person learning REI, I suggest you start with learning how to find wholesale properties to flip to investors. You will need to know how to negotiate the sale price with the owner, contract the property, and have a list of investors to submit your deals to. Start Here! Investors are always looking for deal properties and you can find their ads on bandit signs and in local discount papers. If you learn enough to contract a house at a good price, you are 1/3 the way to becoming a complete investor. Also you can make several thousand a moth doing this with no credit and little out of pocket expenses. One special note: Do learn to do this before calling investors. Investors want to know that you offer real deals. You can't just find a house that is listed for less than appraisal and say "Here you go!" Find out why the house is under market. Get the seller’s motivation. Are there any repairs? How much will it cost to fix them? Does the seller need all cash? Do you have pictures of the house (inside and out)? If there is no current appraisal, what are the COMPS for the property? Develop your system of gathering this type of data. Also, some investors only work with new homes. Others may work with 3/2/2 only. Create a profile for each investor you talk with. Don't send them properties they are not interested in.
Although there are many books and materials on how to find homes and negotiations, I think you should find a mentor. Join a local REI club. Network with investors. This business is people oriented so you have to talk to people. Don’t be so afraid to do nothing because you don’t know everything. Guess what, people will tell you what they want or what they are looking for. You will learn a lot just by stepping out the door and talking to sellers and investors.
Keep this in mind. There are many sellers in your area. If you make a mistake with one try it again. Who cares! Action will fund your reward in time. Trust me, once you do a few, you will have less mental stress about how to do it.
Try a google search like "Real Estate" Club. Make sure to put the name of your city first. Also, try real estate publications. ie. For sale by owner or local Realtor magazines. Some local mentors advertise for new people to train. Check the thrifty nickel. Your aim is to find an investor and ask if they know of a good real estate investment group in town.
Great question:
Flip: To take title to a property (buy it) then 'flip' the property within a short amount of time to someone else.
Flips are a sticky investor technique in the eyes of many lenders. (lenders like to see a minimum of 6-12 months title seasoning) You must steer your future buyers to lenders who understand and underwrite within flexible 'flip' guidlines.
For further clarity on lenders with flexible flip guidelines, speak with a mortgage broker.
Eric & Rosa
[addsig]
Thanks! I ran a search earlier and only found discussions about flip and no-one said what it means. I guess most people on here are seasoned investors, LOL.
Knowledge is power and without it you will fail to invest properly.
We are glad to help.
Eric & Rosa
Flipping is when you buy or control a property for a short time with the intent of a quick sale. Rehabber's will buy a property and fix it up to sell it for a quick profit. This type of flip is usually a sale to another investor or new homeowner. A Dealer Flip is when you locate a property at a wholesale price (80% or less of appraisal value), then turn it over to an investor for a fee.
As a new person learning REI, I suggest you start with learning how to find wholesale properties to flip to investors. You will need to know how to negotiate the sale price with the owner, contract the property, and have a list of investors to submit your deals to. Start Here! Investors are always looking for deal properties and you can find their ads on bandit signs and in local discount papers. If you learn enough to contract a house at a good price, you are 1/3 the way to becoming a complete investor. Also you can make several thousand a moth doing this with no credit and little out of pocket expenses. One special note: Do learn to do this before calling investors. Investors want to know that you offer real deals. You can't just find a house that is listed for less than appraisal and say "Here you go!" Find out why the house is under market. Get the seller’s motivation. Are there any repairs? How much will it cost to fix them? Does the seller need all cash? Do you have pictures of the house (inside and out)? If there is no current appraisal, what are the COMPS for the property? Develop your system of gathering this type of data. Also, some investors only work with new homes. Others may work with 3/2/2 only. Create a profile for each investor you talk with. Don't send them properties they are not interested in.
Although there are many books and materials on how to find homes and negotiations, I think you should find a mentor. Join a local REI club. Network with investors. This business is people oriented so you have to talk to people. Don’t be so afraid to do nothing because you don’t know everything. Guess what, people will tell you what they want or what they are looking for. You will learn a lot just by stepping out the door and talking to sellers and investors.
Keep this in mind. There are many sellers in your area. If you make a mistake with one try it again. Who cares! Action will fund your reward in time. Trust me, once you do a few, you will have less mental stress about how to do it.
Hope this helps.
It means to buy and resell. Ideally in a short amount of time.
KISS
Short version: buying and selling properties with OPM (other people's money).
Quote:
On 2003-12-03 17:26, manganet wrote:
Flipping is when you buy or control a property for a short time with the intent of a quick sale. Rehabber's will buy a property and fix it up to sell it for a quick profit. This type of flip is usually a sale to another investor or new homeowner. A Dealer Flip is when you locate a property at a wholesale price (80% or less of appraisal value), then turn it over to an investor for a fee.
As a new person learning REI, I suggest you start with learning how to find wholesale properties to flip to investors. You will need to know how to negotiate the sale price with the owner, contract the property, and have a list of investors to submit your deals to. Start Here! Investors are always looking for deal properties and you can find their ads on bandit signs and in local discount papers. If you learn enough to contract a house at a good price, you are 1/3 the way to becoming a complete investor. Also you can make several thousand a moth doing this with no credit and little out of pocket expenses. One special note: Do learn to do this before calling investors. Investors want to know that you offer real deals. You can't just find a house that is listed for less than appraisal and say "Here you go!" Find out why the house is under market. Get the seller’s motivation. Are there any repairs? How much will it cost to fix them? Does the seller need all cash? Do you have pictures of the house (inside and out)? If there is no current appraisal, what are the COMPS for the property? Develop your system of gathering this type of data. Also, some investors only work with new homes. Others may work with 3/2/2 only. Create a profile for each investor you talk with. Don't send them properties they are not interested in.
Although there are many books and materials on how to find homes and negotiations, I think you should find a mentor. Join a local REI club. Network with investors. This business is people oriented so you have to talk to people. Don’t be so afraid to do nothing because you don’t know everything. Guess what, people will tell you what they want or what they are looking for. You will learn a lot just by stepping out the door and talking to sellers and investors.
Keep this in mind. There are many sellers in your area. If you make a mistake with one try it again. Who cares! Action will fund your reward in time. Trust me, once you do a few, you will have less mental stress about how to do it.
Hope this helps.
Nice post manganet. You don't sound like a newbie to me!
Thanks for the insitful info!
Best wishes
Quote:
On 2003-12-03 17:26, manganet wrote:
Flipping is when you buy or control a property for a short time with the intent of a quick sale. Rehabber's will buy a property and fix it up to sell it for a quick profit. This type of flip is usually a sale to another investor or new homeowner. A Dealer Flip is when you locate a property at a wholesale price (80% or less of appraisal value), then turn it over to an investor for a fee.
As a new person learning REI, I suggest you start with learning how to find wholesale properties to flip to investors. You will need to know how to negotiate the sale price with the owner, contract the property, and have a list of investors to submit your deals to. Start Here! Investors are always looking for deal properties and you can find their ads on bandit signs and in local discount papers. If you learn enough to contract a house at a good price, you are 1/3 the way to becoming a complete investor. Also you can make several thousand a moth doing this with no credit and little out of pocket expenses. One special note: Do learn to do this before calling investors. Investors want to know that you offer real deals. You can't just find a house that is listed for less than appraisal and say "Here you go!" Find out why the house is under market. Get the seller’s motivation. Are there any repairs? How much will it cost to fix them? Does the seller need all cash? Do you have pictures of the house (inside and out)? If there is no current appraisal, what are the COMPS for the property? Develop your system of gathering this type of data. Also, some investors only work with new homes. Others may work with 3/2/2 only. Create a profile for each investor you talk with. Don't send them properties they are not interested in.
Although there are many books and materials on how to find homes and negotiations, I think you should find a mentor. Join a local REI club. Network with investors. This business is people oriented so you have to talk to people. Don’t be so afraid to do nothing because you don’t know everything. Guess what, people will tell you what they want or what they are looking for. You will learn a lot just by stepping out the door and talking to sellers and investors.
Keep this in mind. There are many sellers in your area. If you make a mistake with one try it again. Who cares! Action will fund your reward in time. Trust me, once you do a few, you will have less mental stress about how to do it.
Hope this helps.
Wow, great info.
How does one find a reputable REI club to join?
Try a google search like "Real Estate" Club. Make sure to put the name of your city first. Also, try real estate publications. ie. For sale by owner or local Realtor magazines. Some local mentors advertise for new people to train. Check the thrifty nickel. Your aim is to find an investor and ask if they know of a good real estate investment group in town.
WOW!!...Bravo, that is what I would call a caffienated post! thank you for the useful Information[ Edited by Needs_Coffee on Date 10/10/2004 ]