Pre-Sale on a Flipped Home
Hi! I have been driving around and noting a lot of FISBOs and new construction. I've called a few of the unlisted new construction I've seen and spoken with one company that flips homes. I'm not a flipper but I would appreciate their perspective. Would it be of interest to you to flip a home with someone who has already agreed to purchase it at a set price? Would you be willing to work with someone who purchases a pre-sale and explain to them how you're flipping it and how the process works?
I think for my first purchase, renovating something and doing a BRRRR is maybe more than I am willing to take on, especially since I have spent most of my time researching being a landlord and not construction. I'm behind the ball since I wanted to purchase a home by now to rent the rooms out.
Are there risks to purchasing a pre-sale from a flipper? Should I go off of local reputation? I'm a little nervous of getting a new flip not on MLS since maybe there's things they could be hiding and it's like putting lipstick on a pig, but at the same time I have seen some remodels that are stunning and it's clear there is an emphasis on craftsmanship.
Please advise on shopping for an off-market uncompleted flip. Thank you :)
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I "presold" a flip late 2018. The buyers saw it 5 times from demo to finish and signed a contract. I agreed to make a 1/2 bath a full bath for them, but o other changes. they wasted 2 months after it was done and then backed out of the contract. They also then fought for their EMD back. Personally I may do it again if it presents itself, but I would make zero changes to my product and would require they move faster on the closing end.