Sat 13 Feb 2010
Flipping Houses
Posted by admin under Agents, Investors, Landlords, Uncategorized
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It can be lucrative, but you better know what your are doing.
Actually entrepreneurs are performing a valuable service. They are putting up all cash in order to compete with others doing the same thing. Banks won’t even consider terms for REOs (Real Estate Owned by banks) Too many cash buyer for these properties. The next thing to remember is that they are buying “AS IS”. So they must estimate what needs to be done to bring it to rental condition or sale. Probably add a little for surprises.
This takes more cash.
The next thing is to rent the property to a tenant and market to investors as a package deal with a property management service included.
Perhaps, the filpper puts it on the market for reasle without a tenant. offering terms for the purchase.
Most people don’t have the expertise or capital to do it themselves or have the stomack for the risk. This type want the advantages of real estate with a great deal of the risk removed.
The flipper is entitled to a profit for the packaged deal with terms. I might add it is not a quick rich scheme, the property may not sell because of changing conditions and a market flooded with foreclousres.
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