Over the past several years with the volatility in the stock market I wanted an alternative way to make money investing, and since Real Estate was my livelihood, it only made sense to figure out the best way in these difficult economic times to use my 22 years of Real Estate Expertise to help my clients and myself make additional income buying and flipping homes.
I have focused most of my energy on looking for Bank REO’s, otherwise known as bank repossessed houses and buying them using a formula that has worked for me in the past. Basically it is take the current value of the property in as is condition, not necessarily what it is listed for, but the houses actual value in as is condition, then subtract repair costs out and then figure 70% of that figure, and that is my target price. As a Real Estate Broker I have a little more room for error than most because I do not have to pay a commission on my side of the Real Estate transaction when I go to sell the property. I would probably use 67% if you are not a Realtor.
I then market the property at a value 5-6% below the market value once my rehab is conmplete, because my objective is to be in and out of the transaction within 120 days if at all possible. The reason for this, if your cash sits in the property too long it is dormant and not making you money, it is losing money, and this concept is crucial!
So what if you do not make as much as you thought, sell it and move on, you can more than make it up on another property. When I list the property I generally expect to receive an offer within the first 2-3 weeks, and I hold pretty firm to my price.
To all of you out there, make sure you know values, and are familiar with the community you are buying in, otherwise you can get burned.
Since 1987 I have purchased over 110 single family homes and I have an excellent track record. I will be posting a few of the actual deals that I made so that you can see the cashflow firsthand or you can call me and I’ll be glad to show you my portfolio. I know you will be AMAZED!
I would be happy to help you get started in this business, if you’re interested please contact me at 513.741-7600. – Mark