All Forum Posts by: Jason Grote

Our family business deals mainly in flipping houses. We recently received a call to purchase a home from an individual looking to sell quickly. We offered him about $20k less than he wanted/needed. My wife is a Realtor, so I offered him an opportunity to list it on the MLS. I told him because of the heavy rental activity in this neighborhood and the at the price point he wanted to sell, he could probably get what he wanted. Sure enough, he just received a cash offer where he wanted it from a man wanting to put his daughter in the house instead of paying for an apartment!

I have seen several investors in my area do just this, especially if there are many renters in the neighborhood of the home. They can list a property on the MLS (yes after acquiring it) and reach many more prospective buyers and consequently make a much greater profit even after paying realtor commissions...

Mike , I agree, however in this scenario, they had to sell and get their cash out before they could move forward. We did a lease back to cover our carrying costs. Your idea wouldv'e certainly been better ;)

Since you never know exactly what is going on the mind of the seller calling you, it is always good practice to begin building rapport on the phone and allow them to get comfortable with you. Once they relax, they will begin to give you a good idea as to whether or not they are motivated and what kind of situation they are in. If they are like a rock and just straight business, then try to schedule that visit ASAP...

I personally wouldn't go there with the sellers... If you know what the wholesale market will bear, then you get it under contract with the agreement to "re-assign" the contract. When you close on the property, the wholesaler you sold it to gets the property at the price you negotiated with him and you get a "re-assignment" fee or your commission, and the seller gets what you offered!

Our family chose flipping homes as our bread and butter because it seems that the overall real estate market is not that great of a factor. If you know the market is depressed in an area, you can acquire a home in that area with that in mind.

We recently purchased a home in Northeast Austin, Texas in a neighborhood that we thought was on the rise. Unfortunately, the homeowners needed several months to build their new home and move into it. After rehabbing the home, it had been 7 months since we acquired it. In this time the market shifted and this area became COLD! The house sat on the market for 110 days before we got our first offer! Yuck! This is not an ideal situation for a flipper.

When a flipper has the controlled variable of buying and selling within a short time, they can make a smarter investment... any thoughts??