Unflip that house

I guess every one has seen those shows “Flip This House” or “Flip That House” I have wondered how many idiots have fell for the scam. Well about 90% of them. I am going to tell you how to make money off those who have made a big mistake in getting into a business they don’t belong. First before you jump in evaluate your self on how well you know the market. If your not a real estate agent, appraiser, carpenter or closing agent stay out of the business you will only lose your A$$ like his guy. When purchasing or selling a home you’re going to lose about %5 to %6 of the home in closing cost. So do the math, if you purchase and sell a $200,000 home on the same day you will have to cough up $20,000, That means to break even you will have to purchase a home for %80 of its value and unload it at %100 the same day. That is impossible unless you are a wholesaler and have no vested interest in the home. Purchasing a home at %60 of its value then increasing its value and unloading it in about 30 days is what the TV shows claim to do. This is also impossible because there are too many idiots ready to out bid you on the home. So how do you do it? First you will need some type of training in the business, either as a realtor, closer, appraiser or carpenter. To get that training go back to collage. I am not kidding you will need to learn something about the trade before you ever get into it. Stay away from the “get rich quick” seminars that’s just another way to unload your pockets from a conman who has found telling you about something makes more money than doing it. Take a few adult night classes, they are the same thing everyone else is taking but cost about %10 of the day class and does not earn credits. If you are a realtor you save up to %7 on the sale of the home and up to %3 on the purchase. If you learn how to evaluate the actual appraisal value of a home you can save your career by keeping a distance from dead beat property. Now that you have a foot hold into the industry you can apply your abilities toward profiting turning over real estate. Now, put my idea into effect. Many of those individuals who have gotten into the flipping business are in over their heads and ready to unload several mistakes. You may want to create a web site or business to pull in the flippers to acquire information about the homes they have possession of. After contacting the home owner gather as much information about the home you can, including the finance company, a contact and the underwriter for the title.
Appraise the home, and compare its value to the neighborhood. A home can not sell for any higher than the average value of a home in its neighborhood. Offer the home owner %60 or less of its value. If the home owner accepts the deal, stop go back to school or have the house inspected. Your intent is not to purchase the home from the owner but the lender. After the owner has turned down your offer contact the lender. It is very likely the home is in foreclosure if the flipper has contacted you in the first place. The lender is more likely to sale the home to you at %60 than the owner. Use the same underwriter and demand the reissue rate for the title. In many states they have to give you that rate by law (bet you did not know that) the reissue rate can save you an additional $800 or more on closing cost. After taking possession of the home immediately have your remodeling team complete the repairs on the home. If you don’t have a contractor you are unprepared and in the wrong business. Bring the home to a live in condition; any more is a waste of money and a loss on your end. Price the house to sell, that means less than %95 of the appraised value. Attempt to roll over your appraisal, and title into the sale of the home. If you are a certified realtor you recover most of the realtor fees even if some one else sells it. Remember this, Donald Trump owns his own closing company, the realtors are under his higher, he is the underwriter and he owns the appraisal company. The contractors are also full time employed by him. He makes a profit both coming and going on any real estate deal he does. If your not part of the business your part of the problem.