You have been thinking about getting into the house flipping and wholesaling business for a while. But where does one start? Being new to the flipping business there is a lot you need to know.
Pick out a neighborhood or two you would feel comfortable working in. Drive through the neighborhood
and look for all the “For Sale” signs. Write all the addresses and phone numbers. Make contact with each property holder or real estate agent and ask the same questions on each property. Make up a check sheet so you can keep track of each property. Some of the questions you should ask are:
1. How many bedrooms and bathrooms does the property have?
2. How many square feet does the property have?
3. Dose the property have a 1- or 2-car garage, and has it been converted into bedroom?
4. How old is the roof?
5. Does the property have central air, and does it work?
6. Does the property need any work?
7. How much are you asking for the property?
8. Will you hold owner financing?
This is a short list of the questions that should be asked.
Then go to your county’s Appraisal District. You can do this online. Go to Property Search and type in the address of the property or owner’s name. When you do that, you will see:
1. Property ID
2. Geographic ID
4. Property Address
5. Owner’s Name
6. Appraised Value
All this information is very important, but at this time we are going to concentrate on the appraised value also known as assessed value. The difference is:
Appraised value is when a licensed property appraiser comes to a property and does a complete appraisal
for a bank mortgage or a refinance. Assessed value is when the county comes and appraises the property for its tax value. At times this may be the same, but I wouldn’t count on it.
Look at as many properties as possible. Keep good notes on each property. Take a picture of the outside of the property and attach it to you question sheet. Keep doing this until you have a understanding of the houses and the prices in the neighborhood
House Flipping and wholesaling is a great way to make money.