I’m not sure what the students of Carleton Sheets course do. My understanding is that he emphasizes buying with little or no down payment and then holding for long term rental.
What you are doing is called flipping. It is probably retail flipping, also called “retailing”–selling to the end-user, either a home-buyer occupant or a rental property holder. Although, selling as cheap as $35K for a $45K deal, you might get somebody to buy it and then they might resell retail at the $45K market value or higher.
Posted by Greg Schultz on October 07, 2002 at 19:56:55:
I have got a house under contract for 25K. Similar houses are selling for 40 - 45K. I thought that I had it sold once for 32K, but their credit was a lot worse than they originally told me and the lender. So I called the owner and told him it will take me a little longer to sell and he is ok with that.
So I decided last Friday to get an appraisal just to make certain I was in the ball park with my numbers. I got it back this morning, it appraised at 44K.
Then my hardmoney lender called me this afternoon and told me that he is taped out because of some family matter that happened over the weekend.
Without him I can not close. I have calls into 2 other lenders but I have never done business with either of them.
I would like to make a quick 5K on this one if it is possible.
Grab the paper and start calling on the “We Buy Houses” type ads. Put a for sale sign out front, with the price on it: BARGAIN! $35,000.
Put an advertisement into the paper for $35K–point out that it is $10K less than the appraisal.
Pass out fliers in a 7 to 10 block radius of the property. Some of the people there are renters. Others would like to get their relatives to own near them.