Marketing Home with current owner still there.

[Samuel Ksiazkieicz]

Alright, here is kind of a newb question but please bear with me.

Whenever we talk about buying strategies, it seems like a lot of time is spent on how to find the seller etc, and then just kind of jump to closing. I have worked with investors finding sub2s, LOs and regular flips, but never actually pulled the trigger myself and this is honestly the most daunting part for me.

If you have a seller, a whole family, with a family's full of stuff in a house that you are looking to sell under a Lease Option or flip, how do you go about marketing and showing this house? You have the option to buy with them, giving you say 30 days. I guess for me the concern is that I will have this homeowner sign the option and the contract, have them spend the money to move out of their house and move into a new place, and then for whatever reason be unable to find a suitable buyer. In this example the buying strategy doesn't involve me getting financing. Granted, you should have a buyers list already set up but lets say you don't.

Thanks

[Jon Holdman]

I'm not sure what you mean by flipping that makes it distinct from wholesaling. So, let me briefly describe three strategies you may be trying to use to move a house you have under contract.

Wholesaling - this is EXACTLY the same thing as being an agent. The legal details vary to avoid engaging in unlicensed brokering, but the task is the same - find a buyer. This is sometimes called flipping. You market the house. Prospective buyers look at the place. Someone decides to buy. You assign your option contract to them for a fee and then the buyer exercises the option and buys the place. Your profit is your fee.

Sandwich lease option - you say you might find a lease option buyer. But you don't own this property, so you must be doing a sandwich lease option. You only mention having an option, which gives you the right to buy. Doesn't give you possession, which you need for this strategy. So you need a lease with the seller, too. You turn around and sell a second option and sublease the property to your lease/option buyer. The price of the second option is higher and the rent on your sublease is higher. You pocket the differences. The lease gives you possession, so the seller has to move out about the time you sign the lease. You start paying rent. If it takes you two months to find a buyer, you pay two months rent out of pocket.

Fix and flipping. You buy the house, fix it, and resell it higher. When you buy, you get possession. The seller moves out. You do the fixing and resell it. In the meantime, you have payments, assuming you have a mortgage on the house. This is also called flipping.

I don't think you're fix and flipping, but you distinguish between flipping and wholesaling. I think you're reading a bunch of books. Keep in mind these gurus often make up terms or apply terms in unusual ways. That makes it sound like they have some secret nobody else has. They don't. This business has been around a long time and there's nothing new.