Flipping and Options

[Adam Zachmy]

A little guidance please. How does flipping actually work? Is the goal simply to tie up the property by finding something below market price and entering into an "option" to by with the seller, then finding a buyer as quick as possible? What are the rules of locking in this option? I assume I need to pay some type of upfront premium to lock in the property. If this is the case is it easy to find such sellers? What benefits does a seller have for cooperating? Why would a seller waste his or her time?

Thanks for the help guys

Adam

[Russell Ponce]

It is not easy to find sellers willing to sell at a discount but that is the key to finding off market deals. Such folks are referred to as "motivated sellers," they become motivated for different reasons like bad tennants, damaged property that they cant or dont want to fix, a property falls into their lap that they want nothing to do with, etc.

You as the investor dont need bank approval, you can offer cash and the ability to close quickly. You sign a purchase agreement with seller and get private financing or sell your contract to an investor for a fee (called "assigning" the contract).