Can you still make money flipping homes in the current market conditions? To some, it seems nothing more than an illusion. But for others, flipping is big business and the economy is actually helping get more deals.
Instead of focusing on the area, successful flippers focus on building systems. And to flip homes successfully as full time business revolves around three steps.
1. Finding the leads.
Be sure not to confuse leads with deals. Constantly promote your business to get more leads into your funnel. This is where it all starts for real estate investors that want to flip their way to wealth.
You’re going to remain on the lookout for potential properties and motivated sellers. Without actively promoting and marketing your business, then you’re never going to get deals. So, take step one and start marketing your business in an attempt to find and attract motivated seller leads.
2. Deal Converting.
Once you market your business, you’ll start getting leads of red hot motivated sellers begging you to buy their homes. So, next you’ll want to pre-qualify your seller to make sure they’re motivated. And then you’ve got to listen to your seller to make a win-win offer. The more information that you collect on the phone call or by your website, the more time you will save.
3. Time for the payoff.
This should be what you think of before ever presenting the offer. Although, this is the last piece of the puzzle, you should began the entire process with the end in mind - how you plan to get out of the deal and get paid?
Here are some options to consider as your exit strategy:
a. Do you plan to flip the property fast to another investor that will buy the property to fix up, and then resell to a homeowner?
b. Will you sell to a landlord investor that buys homes to hold as rentals?
c. Are their any investors that you have previous relationships with that would be interested in the deal?
Success depends on how quickly you can sell the property. Work to build solid relationships with real estate investor buyers in your local market because these investors are always on the lookout for more deals.
Negotiate a good enough deal so that you can leave some money on the table for your buyer. Investors don’t care if you make a profit as long as the deal makes sense for them.
