How To Buy A House To Flip
How to Buy A House To Flip? Have you heard the saying: “You make money when you buy”, if not, write it down! This is the key to success. Basically, if you don’t buy the house for the right price then you have no chance of making money. Your profit margin is set when you buy. This is very important. In this post we will explain How:
- To buy a house with the intention to flip houses
- We find people willing to sell their house for a good price to make flipping possible
Buying the house for the right price does not ensure success, but buying it for the wrong price will ensure failure because there is no way to recover the loss before you even start any of the work.
How to Buy a House to Flip to Make a Profit Every Time?
Simple! Set Yourself Up For Success. I know this sounds too cliché to mean anything, but it’s very important. Let us explain: It is pointless to buy a house no matter the price if no one would be interested in living in that area. How would you resell the house? You would be stuck with a house that no one wants to buy or probably even rent.
Typically, this is mentioned when buying a house for yourself to live in. People start talking about perfect school districts, conveniently located to shops and attractions, etc… All this is important but when investing you need to ask yourself a slightly different question. Ask yourself, “Do people want to be in that area?” If people want to be in that area, then you have a house in a good location because there will be a pool of buyers! Your personal opinions of the area doesn’t matter!
Know What You Are Buying
You have to know the true condition of the house and an accurate estimate of the amount needed to fix it up. If you don’t have a good idea of how bad the house is or the cost to fix it up you won’t be able to formulate an offer to set yourself up for success.
You need to leverage the ARV (After Repair Value) of the house with the Repair Cost to formulate your offer. I know you want to flip immediately, but just be sure you run your numbers, and hope you get the house for the right (but fair) price!
As we promised, we will document the entire process from beginning to end. Well, it all starts by getting leads!
How We Get Our Leads
We do not do paid advertising, but we may explore that option in the future.
If you are a homeowner and you need to sell your house, there are great ways to do this efficiently. Find local home buyers easily in your area, no matter where you are.
Direct Mail Marketing
Direct mail marketing is the process of sending mailers out to potential leads in the hopes they will reach out to you after reading your mailer in order to sell their house to you. Usually it takes at least three touches (forms of contact) for a seller to reach out to you. Some commonly used Direct Mailing pieces include:
- Yellow Letters
- Official letters
- Handwritten letters
In this channel of marketing the mailer is only as good as the package it comes in. If the mailers don’t get opened or read, it is useless, and the money spent is wasted. So mailers need to be noticeable and compelling.
Many “experts” say you cannot create motivation. What this means is that if a seller is not motivated to sell, no matter what you write, it will not create motivation.
But this isn’t true. Sometimes you just need to inform potential sellers on how easy the selling process can be! Then, after reading the mailer, they realize how easy it can be to sell their house and no longer have to deal with the stress of maintaining it!
People may think that direct mail marketing is as simple as sending as many mailers to as many people as possible.
That couldn’t be further from the truth and is often why they are unsuccessful. The list of potential sellers pulled is important along with the cadence and timing of the mailer depending on the list pulled. For example, a potential seller facing foreclosure will receive mailers very soon after their pre-foreclosure status is published. Therefore, it is important to mail to updated pre-foreclosure lists as soon as they’re available and for your mailer to stand out. However, an absentee owner may not be as pressed for time to sell so you can periodically send them mailers every month or so.
SEO Content Marketing
SEO stands for Search Engine Optimization. Let’s try something out. Go to a new window in incognito mode. Do a search for “Sell my house fast Pasadena Maryland”. What do you see?
Not only do we rank pretty high, but you see we rank number 1! It would be very hard to miss us if someone searched for how to get their house sold fast.
We rank #1 for many other cities as well, but even when we don’t rank first for a specific city, our big company profile is still shown!
Whether or not you rank on google it is important to have a digital footprint. Make sure everybody knows what you are doing and what service you provide. Tell all your friends, family, and social media friends. That’s how we landed our very first flip.
We were at a neighborhood cookout and one of the neighbors heard that we were buying houses and said hey, “we have a house that we have been letting our daughter live in, but she is moving out and it needs a lot of work. It has foundation issues that we don’t feel like taking care of. We don’t want to be landlords anymore and really need cash to pay off other debt. Would you be interested in buying it?”
We said, “Absolutely, we will take a look at the house and let you know what we can do.”
After seeing the house WE LOVED IT! We made them a fair offer on the spot.
Here is why our offers are often accepted. We Never Give Lowball Offers! We simply look at the house and its current condition, and analyze the market value of all other houses similar to this one, and we give an offer that corresponds to a fair evaluation based on its condition.
We often explain to the homeowner how we formulated our offer and they have no reason to reject it if they truly want to sell.
This way, they get a fair offer, and we get a fair sale! Everybody wins!
They accepted our offer!