Thursday, March 22, 2012

FLIP THIS HOUSE

FLIP THIS HOUSE

How come so many people are wanting to flip this house today? Flip this house is a challenging endeavor in today's climate. But, hat people see as flip the house, is actually them wanting to think and grow rich.

Flip this house in today's market is easy. Or is it? There are foreclosures all over the U.S. with perhaps Las Vegas, Nevada being the hardest hit.
But you do not have to look far to find a house in your own neighborhood that is in foreclosure. So let's see how to flip this house.
To flip this house, you need a few resources. You need to have all of your resources ready. You will need financing which are called hard money lenders and gap funders. You will need to have a contractor ready, and a real estate agent to sale the house when it has been repaired. All of these resources need to be ready to flip this house.
So how much do you bid for your flip this house project? You have the house appraised (and after several deals), I generally take a maximum of 65% of the house value to include all costs. So If it is a $100K house, after purchase, repairs, holding costs, and real estate agent fees, I will have no more then $65K in my flip this house project. If the home is in a declining house value area, I even knock off 5% to 10% of the appraised value to cover the declining value during the holding or repair period.
Banks will accept foreclosure bids today that you would not imagine due to the back log of foreclosures. To purchase your flip this house project, you will pay mere pennies on the dollar.
The caution area is the repair budget. Be sure you do not underestimate repair costs or they will come out of your pocket. Every deal is on a case by case basis, but a good rule of thumb is the repair cost should not be more than 10% of the total 65% costs you will be into the house. Your flip this house project depends on the cost of repairs being accurate.
Finally, in your flip this house project, do not always go for the big bucks. Sell the house quickly. Had you rather make $15K today or $19K in two months. When I flip this house, it is the $15K I want today.
Finally, A great source of information is the Armando Montelongo seminars which will guide you through the whole process. I highly recommend attending one of his seminars. Good luck on your flip this house project.