I was getting into the flipping real estate craze at the worst time... 2 months before the bottom fell out. Everything changed. Old methods that filled investors pockets with fast and easy cash disappeared with the mortgage crisis. So I had to discover what the new secrets were, to flip houses month in, and month out.
Most investors have gotten out of the flipping houses game entirely because they haven't modified their systems to match new obstacles. They can't find low hanging fruit using old outdated and accessible methods. As any entreprenuer will tell you... there is fantastic money to be made in ANY market... with the right know-how.
Serious real estate investing pros are STILL flipping contracts, and making big bucks. We are using clever new tactics to fix a flip for sizeable paydays. What are they doing?
Here are 4 secrets that are absolutely making today's savvy real estate investor wealthy...
Who are you buying your deals from? Only deal with motivated sellers. Your flipping houses deals will never get off the ground if you try to aquire houses from people who are not facing, as Ron LeGrand likes to say, the Four D's. Death, Disease, Divorce & Disaster. Those factors make it an urgency for a homeowner to act fast. The simplest way to determine that is to simply ask them why they want to sell, and then folly up by asking them what will likely happen if they don't sell right away. This secret will filter out time-wasting going nowhere deals from the beginning.
Are you targeting motivated sellers with pinpoint precision in your marketing, for the most profitable deals in today's market? Where are these people, and what is their exact fear?
Right now, the churning supply of houses to flip are in pre-foreclosures. Getting to these people is THE key. Working pre-foreclosures takes extra methods, than the old fix a flip methods. But again... these new steps create less competition. How do you find pre-foreclosure prospects? I'll let you in on that shortly.
Are you using other people's money to get around the new seasoning requirements? Institutions all over the country are instituting 30 day limitations to eradicate forever the same day transactions. Again... most amateur and unserious investors are leaving the marketplace because of this.
But savvy investors have an answer to the seasoning obstacle. There are a few, under the radar investment firms offering what's called transactional funding for flipping real estate in these new market conditions, wiping out the this obstacle.
For those who have access transactional funding, there are MORE deals to do, not fewer. If you had transactional funding, allowing you to wait out the 30 day seasoning period, could you flip profitable real estate deals? Of course you could.