All Forum Posts by: Mark Sanderson

Sorry to hear about your dad and I'm glad that you are there for him!

Stay motivated as you build your financial foundation and continue to learn.

I tell clients to look at other people's successes so that they can see that flips are happening in their area.

Here's a listing for a property that was sold for $155,000 back on December 18, 2023 and is now listed for $245,000

https://www.redfin.com/AL/Huntsville/3916-Binderton-Pl-SW-35...

Here is another one that sold for $210,000 on March 13, 2024 and is back on the market for $284,000

In both of these listings you can go to the Sales and Tax History and see pictures from the previous listing. Compare them with the current listing pictures and you can see what was done in order to list at the higher price. 

Keep learning and stay motivated!

Hi TJ,

I always suggest to clients that they take a look at homes in their market to see what other flippers are doing.

Here a couple of example properties that you could look at and / or contact the listing agent for more information.

This property is currently listed at $639,997 and sold for $375,000 on 1/18/2024.

https://www.redfin.com/NJ/Bloomfield/465-Beardsley-Ave-07003...

Another one to look at is this one that is listed at $694,850 and sold for $485,000 on 2/20,2024.

https://www.redfin.com/NJ/Maplewood/77-Rutgers-St-07040/home...

Hopefully this gives you some confidence and motivation!

Sometimes it helps to see what others are doing in your area. 

I did a quick search in your general area and found this listing in Lambertville (not right next door for you):

https://www.redfin.com/NJ/Lambertville/92-Swan-St-08530/home...

Take note that they bought it for $197,000 in January and now have it listed for $499,000 - which might be kind of high, but gives you an idea of what a flip looks like in your area. It will also give you an idea of what a property looks like when it is ready to flip.

I hope this gives you some motivation!

Now that you are able to go full-time, I would suggest that you consider having more than one strategy in mind. 

It's great to look for BRRRR's but you might pass by some great fix and flips with too narrow a search. Just start looking for properties and let the property property decide if it wants to be a flip or a rental based upon then numbers.

Plus you won't be frustrated / discouraged waiting to find the perfect BRRRR

I think you will like being an owner rather than an employee!

 Hi - Aaron,

The advantage of the MLS is that someone has decided to sell their property.

The "other prospecting methods" are ways to find people earlier in the process. 

For example pre-foreclosure leads have been around for a long time as foreclosure is an indicator that the property will soon be for sale.

Vacant property leads indicate that the owner has already left the property.

A newish source is HOA liens which is an indicator that there is a financial issue associated with the property.

Unpaid property taxes are a similar source.

Bankruptcy records are an interesting lead source as you can see when properties may be losing bankruptcy protection.

Several "I buy your house for cash" sites sell leads.

There are several others sources but that gives you an idea.

So basically you are putting a marketing plan in place and contacting owners at the opportune time. Then you help the owner solve their problem with the property.

I hope that helps - Mark

Hi Dan,

Part of my research is to sample closings that look like flips nationwide.

I've sampled California a few times in the past year. So nowhere near a complete report but good information.

So just in the City of Los Angeles I'm showing 418 potential flips.

Of those, 231 were originally listed on the MLS - that's 55%

Glendale is 7 of 18 were originally listed on the MLS - 39%

Manhattan Beach 6 of 7 were originally listed on the MLS - 86%

Long Beach 57 of 95 were originally listed on the MLS - 60%

My take away is there are a lot of flips to be found on the MLS

The other take a way is that there are a lot of properties to be found using other prospecting methods.

Hi Alex,

Yes - they would have to get the HELOC and then let you borrow the credit or make them partners in your venture.

Family loans have advantages and disadvantages so be careful.

Here is an example property you may want to show them to help them under the potential:

This property sold Sep 2018 for $155,000 - https://www.redfin.com/AZ/Tucson/841-W-Franklin-St-85745/home/50426763/tarmls-21817566

And is now listed for $339,900 - https://www.redfin.com/AZ/Tucson/841-W-Franklin-St-85745/home/50426763

Take a look at the property pictures and see all of the updates. Also note that it has been listed for awhile. A flip can take time to happen.

Another option is to form an LLC and use corporate credit for startup funding.

Hi Chase,

That's a common route when purchasing a property that won't qualify for a conventional loan. 

Once the property is rehabbed and you have equity in the property you can replace the hard money loan with a conventional loan. 

I'm seeing some lenders providing a "long term rental" rehab program that would eliminate the refinancing. I don't know that they are going to want / let you to pull money out immediately.

I would suggest reviewing a bunch of lenders and seeing what programs they have.

Start with the lenders at - https://www.biggerpockets.com/companies/hard-money

Another option is to establish an LLC and get corporate credit / business funding. That way you have startup funding and have more flexibility with some of the different lender programs.

Hi Dan,

There are actually quite a few deals found on the MLS in LA. That doesn't mean you don't have to network as that makes deal finding easier - but there are deals on the MLS

I have a research assistant that looks at this for me nationwide.

Here's an example:

Sold in January 2019 for $205,000 - https://www.redfin.com/CA/Los-Angeles/1762-E-111th-Pl-90059/home/7314651/crmls-SB17210662

Now pending with a list price of $429,999 - https://www.redfin.com/CA/Los-Angeles/1762-E-111th-Pl-90059/home/7314651

Or

Sold in January 2019 for $430,000 - https://www.redfin.com/CA/Los-Angeles/535-W-124th-St-90044/home/7331796/claw-18-402646#property-history

Then sold in May 2019 for $600,000 - https://www.redfin.com/CA/Los-Angeles/535-W-124th-St-90044/home/7331796

Let me if this helps and if you would like to see some more.

Glad to help - let everyone know when you have your first deal!