Where do you find the perfect flip?

By
Real Estate Agent with DeLex Realty

I am asked that question almost daily. 

The truth is, the answer is not glamorous. There is no secret weapon. In my years of flipping homes, I have found the MLS to be the place to find the best deals. First, Realtors tend to be honest and trustworthy, making their clients act honorably. In fact, the Realtor industry has designed the process to ensure the selling party is not a crook. I have only been burned by one real estate agent in my time, while I have been burned many times in wholesale or foreclosure deals. 

What is a wholesaler? 

Wholesalers are those how either buy at the courthouse or knock on doors to find properties to sell to flippers. We do buy a lot of property from wholesalers but trust me, it is 100% buyer beware. The wholesalers themselves are generally honest (they will not last if they are not), however the original sellers are not always and if the home was purchased at auction, nothing is ever known of it. 

Why not the auction?

The auction is a dream world of most flippers where they buy homes pennies on the dollar like you hear on the commercials. In the real world, the auction is dominated by professional buyers (wholesalers) who spend two hours each day at the auction and ten hours researching before they go. They know each homes value and they tend to be friends with the other professional buyers they see each day. It is not uncommon to see buyers run up the prices for fun when they see first time auction attendees. 

Hiring a professional buyer.

There are buyers in town who work for other people. They will do the research on a home you are interested in, they will attend the auction where they are a regular and bid for you for a fee. They are a good way to go if you are stuck on the auction idea, however keep in mind that what may seem like a good deal is not always. There is NO disclosure on real property sold at auction, city violations, building problems, mold, termites, structural damage are NOT reported on auction homes. 

Posted by

James (Jim) Lord

jim@jimlordregroup.com

www.jimlordregroup.com

480-648-3378

Comments (5)

Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

I've never actually attended a house auction and your description was quite interesting. Thanks for sharing!

Aug 26, 2017 03:17 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Jim. Flipping is not for the faint of heart! Enjoy your day!

Aug 26, 2017 05:19 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Each persons idea of a flip is different.  Not many left to flip n my area,

Aug 26, 2017 05:20 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

This is great and very interesting information, thanks so much for posting this blog!

Aug 26, 2017 01:45 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Jim Lord Those are very good list of tips to find the perfect flip.

Aug 26, 2017 03:33 PM

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