Flipping

[jen5273]

This is Trump's quote.  Note how he said he found a couple willing to do the repairs themselves.

Thankyou, The house I flipped, I put a bid of $72,000 the house was worth over $90,000 but it needed some repairs. After a couple days gone by I recieved a call, They accepted. That day I went over to the property had the couple sign all paper work, Also giving me full access to the property anytime. I then placed an ad in the paper, within a day the calls poured in. At first I didnt think anyone would buy because of some repairs that were needed. But I wound up selling to a young couple who didnt mind doing the repairs. They offered me $93,500. I accepted and after closing costs and other fees I will recieve aprox $13,000 from the title company. Life is good

[Manga27]

This is Trump's quote.  Note how he said he found a couple willing to do the repairs themselves.

You're right, Jen - thanks for the clarification.  I should have read the whole thread before providing my example.

Trump did a wholesale, but did a "pretty house" wholesale as opposed to the "ugly house" wholesale.  He got semi-lucky IMO, but it does happen often.

Some homebuyers simply do not understand the market and how to find the actual value of the house.  In this case the couple felt they were getting a deal.  

Trump could have given it to them for $85-88k if they wanted a bargain - still an $8,000 to $10,000 profit for Trump.

Personally, I find it easier to find "ugly houses", because the handyman contractor/investors will beat down your door to buy it.  If the repairs are more than carpet and paint, a newlywed couple won't bother.

Take care,

... Christopher

[Bettysue]

Magna27

Where exactly would you look to check to see if flipping is illegal in your state?  I am totally new to this.

[trump21]

Let me say This, Yes I was the middle man in this deal and no the owners didnt know what they had. The house was in a half way decent neighborhood, it needed some work. I never said it was valued at $90,000 I said " over $90,000" If you want to get specific i was valued at $95,000 So in the eyes of the yooung couple I sold it to, it was a deal. mabe for someone else it wouldnt have been , but in this area of town, the city offered at $5,000 grant for people moving into the area, Also a first time homeowner program was available to them and since the house was valued at more than the asking price, they actually bought the house with no money down.  Now I think it ws Jen who asked why wouldnt the buyer and seller do business and eleminate me. " the owners of the house werent sure if they wanted to sell. My program that i have targets people who need to sell, Not want to sell. These people had to sell. Therefore, I get a really good deal on the house, There is a big diference from people who want to sell and people who have to sell, That my friend is the deals I look for. And no i am not a broker, realotor, banker etc. I am a Licenced Contractor, and a Real Estate Investor thats all. And No I didnt reheab or do any labor in this house, The 6 hours i have worked is paper work, talking to the homeowners, title companies, and more paper work. Thats it folks this is rocket science..

[trump21]

Guido84 writes;
hey trump congrats, i would also like to break the ice flipping houses:). A couple of questions, maybe you  can help me out. Did you buy an HUD home? and are you a licenced broker, agent, did you have an agent do it for you?   Thanks a lot.

No it wasnt a hud home.
No i am not a broker.
No agents were used it this transaction.
I did it all myself besides using a title agency and some misc. work my lawyer helped me do.  

[trump21]

Here's what I find very confusing about flipping:

So, Trump, you bought this $90,000 house for $72,000 and then turned around immediately and found someone to buy for $93,500?  What I don't understand is, is why didn't this couple just buy the house for $90,000 straight from the original seller?  

What I mean, is why was this seller having so much trouble selling the place that they were willing to accept your lowball offer?  Obviously this house wasn't hard to sell if you said you had offers flooding in the very next day.  To be blunt, I just don't see why you were needed to make this deal go through.  

Was the original seller just not looking hard enough to find potential buyers?   And if that was the case, then how did you find her in the first place?  

I really want to learn, but this whole "flipping" position seems unnecessary in the scheme of things, looking from the original seller/end buyer point of view.  Does this make sense?

Jen I didnt sell the house like you think i did, It took about 8 days to sell this house, in total 6 hours work for showing the house, paper work, etc.

[Manga27]

Magna27
Where exactly would you look to check to see if flipping is illegal in your state?  I am totally new to this.

A RE Lawyer.  ;-)

Actually, an easier way is to just call every title company in your phone book, and ask whether they do double closes.  To be doubly sure, ask if they have an attorney on staff - which most do anyway.

Take care,

... Christopher

[trump21]

Hey Christopher, What 3 states did you flip in ? Tell me about your success stories.

[Manga27]

Hey Christopher, What 3 states did you flip in ? Tell me about your success stories.

Florida, Illinois (near Chicago) and Cali.  Cali was easier than people think - the government puts out lists of distressed and abandoned homes in a PDF file, each month.  I jumped for joy.  ;-)

I feel successful every time I help someone into a home, and they grab the keys like they are a kid at Christmas.  Or I help someone get rid of an asset that has become a burden.  The money is just a side benefit.

What kinds of success stories are you looking for?

Take care,

... Christopher