Flipping Homes Today

One of my favorite Mortgage Brokers posted an article he had found in the LA Times. It was a great article. I 'shared' it on my Facebook so my clients, friends and family could read it too.

The article was about homes that had been foreclosed upon and were sold before they hit the Multiple Listing Service (MLS). Or they hit the MLS after they had been re-habbed or cosmetically enhanced.

I frequently have been asked, nothing new here, to help a buyer find a good deal. 'Find me a fixer!' is the latest. Every buyer wants the best deal, or price, on the home they purchase. That's a given. Part of a Realtors job is to negotiate that for their client. But, the buyer who wants the killer deal? The one that he can get for dirt cheap, do some Home Depot repairs, paint, carpet, etc....then re-sell for a big profit? Those are to be had on the courthouse steps. And, those being had are by investors...with cash. No financing here, no FHA loans, no 5 or 10% down. No inspections, no disclosures, and certainly no guarantees. Not that ever buying a house has a guarantee.

But, if you've got cash, time, expertise...then you have a chance. Look through the newspapers, the web, your neighbors front door. All Notice of Trustee Sales have to be publicly posted. Then, head to the courthouse. You'll find out which homes are up for auction that day. Maybe get a chance to peek in some windows, look around the neighborhood, see if the pool equipment or HVAC equipment is gone.

Maybe, you'll out bid the next guy. Maybe not. It's a tough racket, but it can be financially rewarding. Not common place for the common person. It's not something for everyone. And, sometimes, the investment that is made doesn't reap the rewards hoped for.

If you want to flip homes, find an investor and check out the auctions. If you want to get your feet wet, need to do some financing, talk to a realtor that knows that market. Have them keep an eye out for you. Even if you find something that nets you 10 or 20k profit in the long run....that's still 10 or 20k more than you had the day before.

Real Estate is generally like the stock market. Making quick bucks isn't for everyone and doesn't happen every day. But, if you invest carefully, and hang onto it for the long term, you'll do just fine, courthouse steps or not.