House flipping is the buying of homes cheaply, to fix them up and then sell them for a nice profit. If you are currently considering the possibility of starting a house flipping business, you may be wondering how you can buy homes inexpensively. You have several routes to choose from. Here are a few tips that will help you find inexpensive homes for sale and give you a head start.
"Short" sales are another golden opportunity for you. If you can find homeowners and property owners who have to move and leave town in a hurry, they may be willing to sell what they have via a "short" sale. This means that you can buy up these properties for rock bottom prices so that the owners can leave, not have to leave their properties in limbo waiting for buyers to come along, and take what money you are offering and head out of town. Usually, property owners and homeowners opt for a short sale if they are already faced with a foreclosure of some sort, and the owners want to get out with just a little bit more than just the shirts on their backs.
Finding Homes for Sale for Less Than the Short Sale Cost
Another place to look is at an auction. County sheriffs hold property auctions. Properties that were seized for nonpayment of back taxes are frequently sold this way. You can buy homes and property for either a fraction of the property's value or the cost of the back taxes. Other auctions and ways in which to seize a deal include certificate sales and commissioner sales, both of which drastically reduce the original auction price on the property or home.
Profits from Flipping, Renting and Selling After a Few Touch-ups
When you buy a short sale property, a foreclosure, a sheriff's sale, a certificate sale and/or a commissioner's sale, you can practically make gold after spending coppers or wooden nickels on these types of property. Buyers looking for cheap are content to buy for a few thousand, when you bought the property for a few hundred to just a couple of thousand.
Sometimes, when the property is structurally sound but needs a lot of work, you may be able to make some cosmetic repairs and then sell the property as a "fixer-upper" to a die-hard DIYer and still turn a small profit. Additionally, if the property is completely livable, you can use it as a rental property until it sells, thereby possibly doubling your profits while you wait for the right buyer.