Flipping During COVID-19

[Kenneth Garrett]

Flipping during this time is still possible.  I’ve been able to close on three flips over the last 6 weeks.  I feel I’m fortunate since I hear the horror stories about lenders not funding at the closing table.  It hurts when you  agree to a contract and the deal falls apart.  At this time selecting the right buyer is like selecting a tenant. You have to screen them.  Are they working or are they laid off/furloughed?  Although we do get pre-approval letters you need to read the approval, are they really prequalified or pre-approved. The buyer provides an application with financials, (prequalified) nothing is verified.  Pre-approved is to have some documents provided to receive the approval, this is not always the case.  Always read how they are pre-approved.  It’s pretty worthless in my mind without the verification of income, expenses and credit score of a buyer.  Always vet the buyer as best you can.

My flip $20K profit yesterday was definitely not a homerun, but in these times I’ll take the 20K.

Good Luck Everyone.

[Joe Aiola]

@Kenneth Garrett Great post and great tip! It's easy to want to take the best or first offer when you're flipping, but you absolutely have to screen the buyer like a tenant. 

Glad to hear you're still making real estate work in tough times. Keep up the good work!