Fix and flip Aurora Colorado

[Stephen McCracken]

Hey everyone,

I'm new to real estate and have decided to fix and flip single-family homes. I'll be moving to Colorado soon and want to invest in the Aurora area. I'm looking for homes with ARV around 250-300k. I'll be partnering with my girlfriend and financing our deals through a conventional mortgage putting 20-30% down. We have done research on the area and like the market. Our plan is to find deals through the MLS, direct mail, letters, and cold calling. We are excited and ready to pull the trigger. How does this plan sound? Do you have any tips or suggestions? Also is there anyone who has experience in the area and could recommend a good agent?

Thanks in advance!

[Jared Bouzek]

@Stephen McCracken Flipping with conventional mortgages can be problematic - not necessarily impossible. Conventional mortgages have appraisal standards, so you may run into issues if you're buying properties in pretty rough condition. 

Another thing is if you're purchasing with a conventional mortgage, rehabbing, and then selling in less than six months, you're probably only going to accomplish that once with a loan officer. We have clauses in our contracts that state we have to pay back our commission if you pay off a mortgage early - usually within 6 months. Conventional lenders just can't turn a profit in that short of a time-frame. So when your loan officer loses their commission, they probably won't want to work with you again.