Investors need houses and easy financing! That’s how they make money and the more houses and money they can get the better off they will be. So where do they get them? Well it’s much easier then you would have ever thought possible and guys who are flipping houses are making a killing in this market. The goal of a good fix and flip operation is to concentrate on fixing houses and not looking for the houses.
Money is actually the easiest part of your business. its available everywhere and not from the banks. I will say this about the banks. I do not like them one bit! Banks are the reason we are in this situation and they are not helping the economy by not loaning money to people with good credit. Investors get their money from either private investors or hard money lenders
Hard money is expensive money but its available everywhere and from anyone. It just depends on the deal you have. The terms of the loan are more expensive and shorter term but if you do it correctly then its the easiest money you could ever have. Always have a back up plan to this money because it usually is short term for only 6 months. Always have a list of the cost for repairs because the lender will want this. The longer you work with one lender then the easier it will be to get money because the will trust you more.
The houses are the simple part. You can go looking for houses on the M.L.S. or higher a realtor to do it for you but why go through the hassle. Many big investors go through people called wholesalers. These are people who go find the houses for you and assign the contracts to you and make some money at the closing. You see these peoples signs everywhere saying ” We buy houses” or “I buy houses”. Good wholesalers will advertise everywhere including the internet and can get anywhere between 10 to 15 houses every month. This is what I do. I buy houses from distressed home owners and banks for dirt cheap prices.
As a fix and flip operation, you need to concentrate on fixing the houses you have and selling them and not looking for the next houses. You need to have sources for a steady supply of houses to feed into your business so if this is your business then I suggest you sign up for free with a wholesaler to get their listings as they become available.
My wholesale houses are just a click away. Sign up now for free.. Also published at Who to get financing and get houses for fix and flip deals.