My plan to FIND first good Flip, this feasible?

Question

Hi, I am searching for my first good flip deal: A Single family residence to rehab and flip.

I don't got the cash so I will use Private money loan at 12% interest (its a company not a guy i know).  I know about auction sites, county auction sites but i don't got the cash for that to pay within 24 hours.  I figure targeting distressed sellers this way might be good enough to get me my first flip at a price 60-70% below market value.

How I will find my special property:

1) To find my good deal i will call upon local obituaries.  I will use a little pitch carefully crafted to not giveaway that i found the property from an obituary... feel out for distressed seller signs.  If there is something's there I'll work to close the deal with my private money loan and get my house for 60-70% below market value and flip.

2) I will also put out little i buy houses signs in areas i want to target - like 10 signs.  The phone number will send them to a Google voice carefully crafted voicemail to pre-qualify.  Legit prospects will leave a msg and get further qualified by me and closed so I get my house for 60-70% below market value and flip.

What you think?  Sound good?

Chinmay J. · Answer

@Scott Andreasen - You started out by saying  obituaries. People who have lost their job don't typically show up in obituaries. At least not in the DC area. I am not sure about Florida.. LOL.  No one said hard money is wrong way of flipping houses, however, your plan is laughable at best.. People just don't give away 60-70% of their equity. I suggest that you spend time reading this blog, and listening to the pod casts on BP before you spend a single dollar and time on your plan.

Brent Coombs · Answer

Then where do Obituaries fit in with that?...

David Ebbeson · Answer

Hi Scott,

Hello & Welcome to the BP Community!!  You have taken a big first step in your investing career I applaud you for that. You have made a wise choice in joining the community. This site contains a wealth of information from blogs, podcasts, webinars, articles, books, etc... I suggest you take advantage of all of it and educate your self as much as possible. Depending on which investing path you choose checkout the book section as well as there are some great books to read. But, most importantly like locate some local REIA groups, clubs or meetings to attend as they can be the best source of information and insight to your local market. You can also meet and talk to other liked minded people such as yourself. I think it is a start you will have to see if it gets you the leads you are looking for. If not tweak it and try again. There is no sure fire way to gain the leads you want. Doing something , anything is better than nothing at all. If there is anything I can help you with or questions I can answer for you or maybe just discuss your investing plans. Please feel free to connect with me I am happy to help if I can.

Good Luck Scott & Happy Investing!!

Scott A. · Answer

Maybe my plan is shit. I need to further evaluate. damn

Scott A. · Answer

Flipping a contract will not make much money...Iet someone to buy my position for  $5000 or something... it seems the big money is withFlippinghhomes you can make $25k plus... hmmm.

Scott A. · Answer

I read a guy on here gets a few flips per year from obits as a lead source

Scott A. · Answer

Obits, I would say spouse no longer wants home or maybe he /she is out of work ... maybe hubby was still paying on mortgage.  Other flippers have posted successful leads with flips?  You got any other advice or just nay say stuff?  All I got from your post is that won't work... don't get loans.  What else is there my friend?  How many homes u flipped?  How fast you move them?  How u find properties to flip?  How u pay for them?  Some of us got to hustle. Maybe u don't.

Scott A. · Answer

Am not talking about heirs... I'm talking about divorced couples, maybe desperate folks out of work,etc.  iif I buy houses signs don't work why do I see so many?

If hard loans/ loans are the wrong way foe Flipping then why are so many flippers using them?

What is your solution for Flipping houses to find good property deals?

Bruce Kinser · Answer

Good Luck with that plan.  I would say that you're too optimistic about the kind of discounts you can find with heirs.  Some will sell you at discount, but most, and this is my experience, is that they will attempt to sell through an agent before giving away 70% of their equity.  I'm not trying to throw a wet blanket on your plan, but I am just saying that discounts beyond 30% are a rarity....largely because it's so simple to figure out the value of these homes, and if the home is in decent shape, the heirs wouldn't have much motivation to sell at a deep discount over retail.

I would recommend that you avoid taking out a loan--private or otherwise--I would just flip the contract.  If you latch onto a good deal, you should have little difficulty in finding a end-buyer.

Again, best of luck to you....

My plan to FIND first good Flip, this feasible?

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