Making A Profit On A Flip?
How do you make the profit on a flip? Are you selling your own houses without the use of an agent? I've looked at several properties that would be nice to flip, but between the purchase and resale, the real estate agent is making out like a bandit compared to my take. Anybody have any suggestions on how to avoid the commissions taking a huge bite out of profits? I"m working on my real estate license, but I"m not sure how much that will help.
Thanks,
Bill
1. buy low, sell high.
2. get 70% margins (off of the after repair value)
3. Look for SELLERS not Properties.
4. Do deals in a way that reduce your overhead (sub. to, L.O. etc)
Very simple. Find a broker that will take only a 1% commission and give you the remaining 2% towards cost or give the commission back to you. I have two brokers I use. One gives me back 1/2 of their commission and the other one
gives me back 2% towards my cost. Another way is to go to the selling agent direct and offer your bottom line and let them double-end it and cut their commission if needed. I would recommend using a discount broker that you do repetitive business with. I would also find your own buyers when you flip the property eliminating the agent.
Best Riches,
Jeff <IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by Jeffca on Date 01/08/2004 ]
hibby, that item #3 is so true. I found a bunch of vacant properties, and some absentee owners, and out of 180 pieces mailed, I got 4 responses, and not one was motivated. I will follow up with calls, but bottom line is, motivated sellers are what you are looking for, not necessarily distressed properties. A distressed property withOUT a motivated seller = no deal, no matter how much you try and reason with them.