Where did you find your first flip? Wisconsin based.

Question

Hello Everyone! I am new to posting in BP but not new to the site itself. As recommended I have done my due diligence and would love to hear from the community on some of their experience.

Where did you find your first flip? Wholesaler, MLS, realtor, on BP? Also, did you have each property you looked into inspected?

If you are in the area and have some time, I would love to meet up for coffee, a drink, anything to hear about your experience. You can never learn too much!

I look forward to hearing from you and thank you for looking!

Brett Kash · Answer

I bought my first flip through a wholesaler and am hoping to create more leads through direct mail marketing going forward. I have had little success with my first mail campaign so I am adjusting my "formula" for the next one to try to get more quality leads on the next one.

Jacci Konkle · Answer

HI Cody,

I'm in WI but not in Milwaukee.  I'm up in the Appleton/Green Bay area.  I found my first rehab flip through a wholesaler when I was brand new.  Things have changed a lot since then, and it's more difficult for people to buy them cheap enough to wholesale to a rehabber and make any money, but they're out there sometimes.  My advice is to start doing your own marketing and get the sweeter deals that way.  Waiting for a wholesaler to appear with anything worth buying for a retail flip might take awhile and you'll starve in the meantime.  Same with the MLS....not much to see there most often.  It's such a seller's market that there just isn't much to pick up at the price you'd need to pay for it to make any money (unless Milwaukee is just WAY different than Appleton).

When I first started, I had a few of the homes inspected to help me know what I was looking at.  It's not a bad idea if you're super green!  Mistakes in this business are not cheap, so you don't want to miss anything important.  It doesn't matter what anyone else does....what matters is if you know what you're looking at enough to catch it all and know what's a problem.

Welcome to the forum, and good luck in your RE journey in Milwaukee!!

Scott Schultz · Answer

My fist flip I purchased in 2007 I am a Broker and I found it on MLS, (havent found an MLS deal in years) paid all cash for purchase and rehab, I looked at it, no inspection, but I understand construction, and have been around it since the first roof I helped with when I was 8, never professionally but my family was always advanced DIY'ers. I turned a nice profit, then I was ready to go sell what I was doing to banks, and with a profitable flip with pictures and numbers, I was golden. 29 flips and 24 rentals later here we are. retired at 44 years old

Jacci Konkle · Answer

@Cody Kayser, I actually AM a Realtor, but I still rarely even bother with listed properties. I never had any luck with investor friendly agents because most of them have no idea what they're looking at when it comes to repairs and the costs.  I know they're out there though and have heard of an investor or two having really good luck using agents.  Just remember to ALWAYS pull your own comps for your ARV.  The agents want you to buy and then to list it with them after rehab...they aren't footing the bill and might over estimate that property's worth.  Keep your finger on the pulse of the market too.  Prices are high right now with our sellers' market and will eventually slow down...watch for the signs and keep in mind how long your rehab will take. Be quick to lower your ARV in your purchase formula to protect yourself.

As far as marketing, sure direct mail can be great...just remember to be patient and plan to put out a minimum of 3 or 4 mailings to the same list.  It can be a long term play while waiting for replies and finding a good deal, but it's a good line in the water.  There are many other things you can do to market for deals that are cheaper and faster.  Do them all!

I also agree with @Scott Schultz when it comes to auctions. They are a bit of a gamble because you don't normally get in to see them, but they can also be dangerous in the liens you're left with!  Be sure it's the FIRST mortgage that is foreclosing or that you can afford to clear the 1st when buying the 2nd.  Have your title company run a search and hold on the title and see what liens are on there that will not get wiped.  EX: back taxes, water bills, other mortgages in senior positions.

Good luck in the hunt!

Scott Schultz · Answer

@Cody Kayser I purchased a few off MLS but most of mine have been Sheriff Sales and online Auctions, and a on site Auction. Back when I started buying there were great deals on dates inventory HUD homes, not the case today, they go to the auction sites first through the CWCOT program. The key is to either have access to cash, or a lender that can deal with no tax having interior access, some of my best deals were occupied, with no access, so I had to roll the dice.  Always plan for the worst and hope for the best, and NEVER say “how bad can it be” it can Ben much worse than you ever imagined. It can be easy carpet and paint.

Adam Slipher · Answer

@Cody Kayser I landed my first flip from an absentee, high-equity list mailing. The woman living there had taken over her mother's property and wasn't maintaining it. She just wanted to get out of the home and move into a rental with her son. It ended up being a great first flip with an excellent contractor and profit! Best of luck on yours. Actually... I have a couple under contract right now that you may want to take a stab at: One in Greenfield and one in Pleasant Prairie. Message me for details :)

Marcus Auerbach · Answer

I like to convinience of MLS. You have to look at a lot of deals, before you find a good one and it will be gone in hours, but they are easy to spot and "ready to go". All you need is an offer. I have done yellow letters and postcards, bought from wholesalers. Don't expect a property on MLS to be a deal at asking price, ususally you have to wait until they are ready to negotiate substantially. You could say, you don't find deals on MLS, you have to "make" them.

Cody Kayser · Answer

@Scott Schultz Thank you! I do have full access to the cash. There would be no lender involved. It would be a cash purchase, cash on hands for the rehab as well. Have you attended a Milwaukee Country Sheriff Auction downtown? Thank you for all of the information it very much appreciated!

Cody Kayser · Answer

@Jacci Konkle great feedback thank you! I was thinking of getting the first few inspected. Luckily I know two inspectors which is a help! Also, you mean through DM campaigns and things like that? I have been scanning a few MLS and the marketplaces on Social Media. Have you had any luck with a real estate agent who was investor friendly?

Where did you find your first flip? Wisconsin based.

Most Popular Reply