Archive for May, 2012
The questions beginning swirling again in their heads. What if they don’t qualify for a loan? What if they do qualify for a loan? Who is going to take care of the pool? What if the pool does leak? In our case, three weeks after we had accepted the buyers’ offer, and three days after we had finished repainting, installing the gas line, and removing the tree, the buyers backed out.
Finally, we had a tree removed from the pool area because the buyers were concerned that the roots were going to crack the bottom of the pool. Can you guess what happened? The buyers came down with a disease that all retail buyers get during the course of a real estate transaction.
Lot of things happen lately but I think it’s a good one. What about you guys?
We have found that most real estate investors flip their properties to retail buyers. You may have seen the billboard ads that read, “We Buy Ugly Houses ” These are real estate investors who pay wholesale for property. They go in and fix up the property.
In this example, the equity is the same as the sales price because the seller owes nothing on the property. The sellers didn’t need their equity in cash. They were interested in an income stream. The seller was planning on putting their equity into certificates of deposit (CDs) at the bank.
Why the seller accepted was his own business. We now had a property available to flip. Only by making an offer can you start the process of flipping a property. No offering, no flipping. We flipped the property for $136,000 within 30 days to a retail buyer who was going to live in the property. The buyer was very happy to get a good deal.
You are a real estate investor, not a home buyer. You are a wholesale buyer of real estate. You are going to do things differently. Everyone (except us) will tell you get your financing first, and then buy the property.
