Flipping Properties - Posted by Cynthia Johnson

Posted by SCook85 on April 16, 2001 at 18:32:59:


The first thing that you need to do is determine what the homes are worth after they are fixed up. Without knowing this you will not be able to effectively negotiate with the sellers.

Once you know the values of the homes you then need to talk with the sellers to see if they even want to sell, and then determine the amount of repairs that the home needs.

Once you know the value of the home and the amount of repairs you can determine the maximum amount that you can offer. My formula is After repair value X 70 % less repairs = my offer. I do not use this formula on lower end homes (less then $75k). If the homes are worth less then $75k after repairs I would consider lowering the 70% figure. I would make sure that you keep at least $20k in the deal for profit and holding costs. Since your intent is to wholesale the properties you need to lower your offer by the amount of money that you want to make. This gets you your profit and still leaves a good deal on the table for your buyer.

I hope this helps.


Flipping Properties - Posted by Cynthia Johnson

Posted by Cynthia Johnson on April 16, 2001 at 17:49:00:

I am new in the business and a little frighten about the whole ordeal. I have two properties that are vacant and boarded up and they owners owe back taxes on them. I need to know how to negotiate the deal and sell the contract to an investor. Also, are there any mentor in the Dallas area that will be willing to mentor me in my first tranaction of flipping properties.