Posted by james_CA on July 28, 2004 at 16:06:01:
My understanding is that you put
$500 down
500 per month up to 6 months
after 6mo, do you have to come up with money to buy or you can walk away?
In your case of selling a contract, you just assigned the purchase/sale purchase to a new investor, but it wasn’t easy to market the contract that profited $19000+ right? Did you have to say to a investor 'nice rehap property 20K down?
Flipping, Sounds too gud to b true, ??? - Posted by gam
Posted by gam on July 26, 2004 at 13:57:42:
I am new. I am just reading the articles in this site about Flipping. it is very interesting, but is this really true according to some of your experiences ?
Will Flipping work in a DOWN market ?
>>
Re: Flipping, Sounds too gud to b true, ??? - Posted by Tbyrd
Posted by Tbyrd on July 26, 2004 at 21:58:47:
I’d recommend the book by William Bronchick,“Flipping Properties” (or something like that) I got it at Books-a-million for $18.95.
It’s an awesome book on the flipping process.
Re: Flipping, Sounds too gud to b true, ??? - Posted by chuck
Posted by chuck on July 26, 2004 at 20:21:53:
I tied up a junker property with a lease option assignable contract with $ 500. down at 12 noon on July 1 and assigned the lease option to another investor at 5 the same day for a $ 19,000. profit. We closed today. You bet it is too good to be true!!! If I can do it, anyone can. Good luck.
Re: Flipping, Sounds too gud to b true, ??? - Posted by Rich
Posted by Rich on July 28, 2004 at 01:28:35:
Chuck,
When you say you made a $19,000 profit, did you walk away with $19,000 at that time? Did you assign the l/o to them for $19,000 more than your terms with the original seller? And if so did they put that much on it as a down payment?
Thanks
Re: Flipping, Sounds too gud to b true, ??? - Posted by gam
Posted by gam on July 26, 2004 at 21:46:44:
how did you find the other investor ?
so say if you couldnt find an investor, does it mean the most you could lose is US$500 ?
thanks
Re: Flipping, Sounds too gud to b true, ??? - Posted by chuck
Posted by chuck on July 27, 2004 at 19:45:32:
Over the last year, everytime I see a “We Buy Houses” sign or an ad in the Sunday paper or various community newspapers I write the phone number down. I now have over 100 investors on a list. Everytime I tie up a property be it a lease option or assignable purchase and sale agreement, I start calling the numbers on the list, give them the address and tell them to drive-by and call me if they want to see the inside. If an investor is interested, I will meet him at the property and show it to him. If the seller is living in the home, I will tell the seller that the investor is my partner, contractor, insurance agent, etc. I usually flip the contract within one to two days. I have never met most of the investors on my list. I never have to call more than five before I find someone to flip the contract to. Once you establish a relationship with the rehab investors, they will be repeat customers. You only need two or three to keep you in business. To answer the rest of your question, yes all I have at risk is $ 500. That is a non-refundable option fee which I will loose if I decide not to exercise my option. But, the only reason I structured the deal as a lease option was so that if I could not flip it quickly for what I wanted, I would have six months to rehab it without having to come up with cash to close and fix-up, or needing to get a hard money loan. With the lease option you can tie the property up for $500., then make monthly rent payments of $ 500. while you fix it up. Still a better deal than paying cash or hard money financing. I sold this property in one day, so I never had to pay any rent. Good luck
Re: Flipping, Sounds too gud to b true, ??? - Posted by Bob
Posted by Bob on January 04, 2005 at 02:32:25:
Chuck,
I liked your info on flipping. I was wondering if you ever got burned and what you do so you can keep people honest, Thanks and hope you are doing well(rich)…BOB Ca