Rehabbing Tip$: Episode #3….Where are you buying your Houses?

In an effort to keep the momentum rolling on this great series about rehabbing houses for BIG PROFITS I have put together another great article and video post to give y’all some more $$ making rehabbing tip$ for FREE (which is a rarity these days folks!). Now any of us that have been in the house flipping game for more than 3 houses can attest to the fact that everyone at some point will buy and rehab a deal that they should have passed on! So all this GURU BS about how none of them have ever lost money or bought a stupid house is either 1 of 2 things:

1. They don’t buy houses and only sell outdated recycled investment info for you to purchase for only three installments of $999 and a monthly continuity fee of $29!

2. Or¬† they are just flat out lying and/or have very little “real” experience actually flipping houses. Which means they live in never never land of house flipping where money falls off tree’s and is hidden within crappy outdated kitchen cabinets of overpriced REO listings.

Either way its very important to understand that You Can Loose Money Flipping Houses, or make very little compared to the amount of work you put into the deal…which by the way is exactly what happens to pretty much everyone who signs up for one of those nationwide overpriced big name over hyped coaching programs! Now this generally¬† happens for the same reasons every time…..and that is either because you are not doing your numbers right and are over anxious to become a real estate rock star and do a deal…..or you are buying your houses through the most competitive deal sources available to us as real estate investors. So basically this means you are buying overpriced deals off the MLS or from local crappy wholesalers who have convinced you that the house only needs 15K in rehab when in reality is needs 40-50K. Right now I see A LOT of investors (although I hate to call people investors who overpay for crappy deals….I prefer to call them idiots or Realtors) who are overpaying for deals, and a TON of would be wholesalers trying to pitch crappy deal after crappy deal. Personally I love crappy wholesalers because they have helped my business explode into hands down the #1 wholesaler in my market of Portland Oregon (if you don’t believe me just ask anyone form Portland in the RE biz or go to www.TTMdevelopmentCompany.com). If you actually sell deals that make your clients money they will be banging down your door for whatever you have next…..which is currently what is happening in my business. Anyway back to the point of this article……

So bottom line is this….work on your acquisitions strategies so that you are better at finding deals than you competition. This means learning how to market for motivated sellers, or finding wholesalers in your area who are as good at providing great deals just like my company is for our rehab buyers. If you do this then you will pretty much never need to worry about loosing money, or making chump change on a rehab deal again.

Go where your competition is not and do what your competition wont (mainly because they are lazy) and you will find the super juicy deals with profit margins big enough to photo copy the check and put it on the overhead of your local REI Club meeting! In my business we have purchased only 1 deal off the MLS in the last year….and that’s because it was a deal we got from an REO listing agent that we work closely with….which made it way more profitable than it would have been had we not known him…wink wink. Now we could keep trying to buy deals off the MLS to rehab, but the reality is that the profit margins for most of those deals would just be much smaller than if we sourced the deal ourselves through our own motivated seller marketing systems. So since I like to make as much money as possible when it comes to rehabbing houses…..this means I go buy my product where there is the least competition…..and you should too, that way you give yourself the best possible chance to make the biggest pay days possible.

Now with that said go back and read some of my articles on what marketing techniques we use to bring in leads and source great deals on a weekly basis. Trust me if you can get off the MLS and find your own deals for your rehab business either through marketing or a great wholesaler you will be one rich Mo-Fo in no time! Make sure to watch the video below and let me know what you think…….

By the way…..the market is changing fast! So get your grubby little hands on as many houses as possible right now that need to be rehabbed and you will make a small fortune this year. Its only May (or close to it) and we have almost done more rehab profits than we did in all of 2011 since the market has picked up and so have prices in the areas we are rehabbing in. Its time to make some serious $$ folks, so get out there and make it happen!

 

Comments

  1. Paul says:

    excited about this time in real estate and getting into wholesale and flips. Am now in real estate sales
    as an agent from many years as a real estate investor,credit is in the tank where should I go from her
    to get money am in Massachusetts Do you do anything in this state or have something that might get me off the ground where you are

    Thanks,
    Paul

    • mim_admin says:

      Paul-
      We mainly stick to the Oregon market right now since there are more than enough deals here to keep us busy for a long time…..stay in the business and learn as much as you can about the investing side, since that’s where all the big money is!

  2. Teddy Dupay says:

    Its all about how you BUY!! Great article Tucker and its true, there are very few REAL guys out there. You are one of them and every person smart enough to work with you deserves the rewards that come with that great decision.

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