This is the second article in a series on how to find deals in The Villages, Florida, Monday May 1st was old roofs and cash offers this one is discussing flippers and how you can position yourself to find that deal.
Yes, I work with flippers but they make a much lower offer on a home than somebody buying to keep the home. Reason is they have the expense of selling a remodeled home which includes closing cost, commission and Capital Gains for owning the home less than a year, that number can be $30,000 on say a $370,000 home. Flippers don’t buy homes to break even they buy homes to make money, my flippers want to clear at least $20,000 on average per home so now we are up to around $50,000 some flipper needs after the cost of remodeling.
Last week one of my flippers calls can we go see this house, I set up a time. We meet there walk around I had already pulled county building permits, none since the home was built in 2003 meaning the home needs a new roof, HVAC, water heater and updating. He asks me for a remodeling number I say $45,000, he says $50,000, he asks what I could sell it for and I said we could list it for $370,000 when it was done. He directed me to write an offer for $270,000 we didn’t get it, oh well next. You buying for yourself you are not looking to flip so the $50,000 he adds as profit and expense you don’t have. Maybe offer $285,000 spent $50,000 puts you at $335,000 and you now own a house worth $370,000.
This would have to be a cash sale due to not being able to get insurance which means no mortgage, read the first article in this series! I cannot guarantee you the results outlined above just like HGTV you might find a problem once you start the remodel you didn’t expect.
Dick Betts, REALTOR®
The Betts Team
Touchstone Real Estate
The Villages, Florida
717-860-3107 cell
#realestate #realtor #thevillagesflorida #homesincentralfl #thebettsteam #dickbettsrealtor #dickbetts
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