Financially Free Real Estate Investor » wholesale flip http://www.financiallyfreelandlord.com Get Your Questions About Real Estate Investing Answered Sat, 23 Apr 2011 13:46:35 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 How to find deals to Flip for Quick Cash http://www.financiallyfreelandlord.com/how-to-find-deals-to-flip-for-quick-cash/ http://www.financiallyfreelandlord.com/how-to-find-deals-to-flip-for-quick-cash/#comments Wed, 25 Nov 2009 01:22:53 +0000 Scott Nachatilo http://financiallyfreelandlord.com/?p=265 How to Find Deals to Flip for Quick Cash

Have you ever been fishing when the fish just weren’t biting? During those times, it doesn’t matter what you are using for bait.

When they are biting, they will bite on just about anything.

Finding deals to do a wholesale flip is just like fishing. You have to be smart about the places you choose to go fishing for wholesale deals.

The right type of fish is a motivated seller. Don’t try to get wholesale flip deals from someone who has a nice home in a nice neighborhood with nothing motivating them to sell quickly. That’s not the right type of fish.

The right type of bait is the promise that you can buy their home quickly for cash.

One of the best ponds to go fishing in for motivated sellers is craigslist. I like this pond because I catch fish there all the time. I’ve actually used it recently within the last few months to make about 5,000 dollars on a wholesale flip. Craigslist.com is a where you can place free ads for your home city. It has a category for real estate.

Watch this video to find out more about that:

As soon as you get done reading this blog post, what I would like you to do is get onto craiglist.com, go to your city listings. Find the real estate section. Use the simple headline, “I buy houses in [your city]“. State that you could that you are looking to buy houses at a fair price, that is doesn’t matter what condition the property is in. Say that you want to make them an offer, and put a way for them to contact you. Simple as that.

You may not get your telephone ringing the first week you place this advertisement, but you know it does get you some calls.

The secret is to hang in there. Don’t just put one advertisement and forget to do it over and over again. Put an ad up at least once a week. Put a reminder in your calendar.

That’s just one example of one pond where you go fishing for motivated sellers.

Do you have any other favorite places to find motivated sellers? Leave a tip in the comments.

]]> http://www.financiallyfreelandlord.com/how-to-find-deals-to-flip-for-quick-cash/feed/ 7 How to handle a Closing for a Wholesale Flip http://www.financiallyfreelandlord.com/how-to-handle-a-closing-for-a-wholesale-flip/ http://www.financiallyfreelandlord.com/how-to-handle-a-closing-for-a-wholesale-flip/#comments Tue, 24 Nov 2009 04:19:32 +0000 Scott Nachatilo http://financiallyfreelandlord.com/?p=263 Question: “What’s the best way to handle the closing for a wholesale flip?”
Answer: “The short answer is to let the title company handle it. Your job as a real estate investor is to find the deal, get it under contract, and then get the property sold. Focus on finding deals and getting them sold.
That being said, there are two basic contract arrangements for wholesale flips. One is a double closing and the other is an assignment. I use a double closing arrangement 99% of the time when I do a wholesale flip. I’ll describe how to do a double closing in this article.
The reason I prefer this type of closing is that your buyer doesn’t know what you are paying for the property. They may have a big problem if they find out you are making what they think is a lot of money on the deal.
To set up a double closing, you have a purchase contract with the seller. You also have a separate contract with the individual who’s buying that property from you. You can use the same contract for your seller and your buyer.
You take both of those contracts to the title company (the same title company). They will handle all the details of the closing. That’s what you’re paying them to do. You do need to verify up front they are an investor friendly title company. You need to share with them what your intentions are in terms of the closing. Some title companies cater to retail realtor closings, and they will not be familiar with this process. That is a title company to avoid.
When the title company has completed the title work, they will call you to tell you they are ready to close. Ideally, the title company will do the closing with your buyer first. Your buyer will be putting up the cash to pay your seller and you on the deal.
Again, the mechanics of the transaction aren’t as important as being able to find a deal, a good deal and get it into contract. You also need to be able to line up a buyer who has the cash to close quickly.
It’s also nice to give your buyer a shorter time frame to close on that property than you have. For example, if you have 30 days to close, you might want to give your buyer one week to close on the property. That way, if they wash out for some reason, you still have time to find another buyer.
Your buyer will most likely want to close the day your contract is runs out. But you can’t let them do that to you. You can’t let them walk all over you. Try to get them on a shorter time frame.
If they got the cash, then why can’t they close it in a week?”
Do you have other questions or comments about doing wholesale flips? Please Leave them in the comment box below.

]]> http://www.financiallyfreelandlord.com/how-to-handle-a-closing-for-a-wholesale-flip/feed/ 13 What types of Properties can You Flip? http://www.financiallyfreelandlord.com/what-types-of-properties-can-you/ http://www.financiallyfreelandlord.com/what-types-of-properties-can-you/#comments Sun, 22 Nov 2009 15:48:50 +0000 Scott Nachatilo http://financiallyfreelandlord.com/?p=260 Question: “Can you only do flips on houses that needs a lot of work, or you can do those on newer homes five years or less? “

Answer: “There was a famous direct marketer, the late Gary Halbert, who once asked an audience at a seminar he was leading an interesting question. He asked them if they owned a restaurant, what would be then number one thing they would want in order for that restaurant to be successful.
Many of the participants at that seminar thought they would be successful only if they had a great menu. Or they had great tasting, high quality food.
But the real answer is having hungry customers. If you don’t have a hungry customer, it doesn’t matter how good the food is.
This concept is critical when it comes to doing a wholesale flip with a property. In fact, it’s the number one reason why most real estate investors are not successful when it comes to doing wholesale flips.
Remember that a wholesale flip is selling a property quickly that you have gotten under contract to another investor. The value you provide to the seller is a quick closing and quick cash. The value you offer to the buyer (the other investor) is a good price on the property.
That means you have to get a great price on the property from your seller.
You can do a wholesale flip on any type of real estate. You can do it on raw land. You can do it on commercial properties. You can do it on old vacant houses. You can do it on newer homes that might be fives years or less old.
The most critical piece of the equation is having a motivated seller. You need a seller who is willing to trade some of his equity in that real estate to you in exchange for a solution to some problem he is facing with that property.
I’ve been most successful in flipping properties that needed extensive repairs because the owners of those properties tend to be motivated to get rid of those properties due to all the headaches involved in fixing those properties.
However, a property owner can be motivated to sell a property at a hefty discount due to host of other reasons unrelated to the condition of the property. For example, they might be going through a divorce, they could be facing a medical condition, they might need cash quickly to solve a legal problem, and whole host of other possibilities.
If you are

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