2 ways to do a fast flip: The art of the real estate deal
Insight Doing Business

2 ways to do a fast flip: The art of the real estate deal

The real estate business avails itself of many opportunities with different types of properties located throughout the world.

Like any business, you must have goals and a business model. In our model, we focus on single-family houses as they are easy to understand and the most liquid of all real estate investments.

In our model we have four strategies on what to do with a property when we evaluate a potential opportunity:

  1. Buy and hold
  2. Rehab, manage and sell to investor
  3. Rehab and retail to homeowner
  4. Flip in “as is” condition to an investor

Today’s transaction was a flip.

Basically there are two ways to do a flip:

  • Get a property under contract and assign the contract to a buyer. This is the simplest way and typically involves only a small down payment on your part.
  • Sign the contract with seller and close on the property. Then market the property to a new buyer.

In today’s transaction, the property is located at 2730 Fieldstone – Conyers, GA.

2 ways to do a fast flip: the art of the dealMy personal assistant negotiated over the phone with the out-of-town seller who was wanting to sell the house for $70,000, all cash.

Upon my visit to the property it was apparent that the comparable sales were in the $120,000 range.

The house has a pool and a great deal of stucco in terrible condition.

We didn’t want to mess with the stucco and the pool was in terrible shape. Nevertheless, this was a good opportunity, except the seller’s asking price was too high.

Two ways to do a fast flip: The art of the deal
The pool was in terrible condition.

I determined I could wholesale the house for at least $70,000.

Thus, I needed to negotiate with a motivated out-of-town seller.

I was able to get her to accept a $50,000 cash price and I marketed the house to wholesalers one week before closing.

We had about a dozen inquiries and we sold it for $72,500. We closed on the purchase side  on a Tuesday and closed on the sale of this house by the next Friday.

These types of transactions can become the norm in a hot market like Hotlanta!

The key is to get the leads, understand the model, and take action!

RJ Palano
RJP@BuyCashFlowProperties.com