The short answer is yes; if done with realistic expectations in mind. Most areas are in a buyer's market and the potential for the savvy investor are better than ever. As an active real estate agent, I have done just that for several of my serious investors. You may be wondering why I underlined the word serious. First of all, if you want to make short term money in real estate, you must act immediately. I am looking at properties on a daily basis and when I find a bargain, I immediately call my list of buyers. Unfortunately, I am not the only real estate agent doing this and a good deal is soon put under contract.
Does putting the property under contract force you to go all the way to closing? No. A buyer has several ways out if the property turns out to be less than what was originally implied. However, you have put yourself in first position and thus have the right of first refusal.
Before I recommend a property to a buyer, I do a comparative market analysis. The procedure mirrors the same procedure that I would do when I am proposing listing a property. In many cases, I know the history of the property, what it's true value is and how fast they are selling in that neighborhood. I may even know the sellers motivation.
To get started, you must first realize that most of the time you will not make a ridiculous profit on each flipper. You may only clear $10,000 to $50,000 on each transaction after figuring re-sale costs, repairs and carrying payments; if necessary. But what is wrong with that when figuring only 1-3 months work? In order to effectively make a quick profit on a property, it is imperative that you have your agent thoroughly research the properties value before and after, Only then, can the agent recommend a reasonable offering price (Not so low, that the seller will take another offer) and when the time comes; a reasonable selling price.
A recent scenario went like this. An estate was up for sale in Sequim for $198,000 on 2.5 acres. The asking price was even below Clallam County's assessed value. The executor of the estate was so anxious to sell the property, he even offered owner financing. He did not live in the area and the heirs were anxious to get their inheritance. Offers as low as $170,000 were being seriously considered. The home was 1700 SF, but older and need of some repair. However, the value of the home was actually $225,000 or more without doing any work. I estimated that with some paint, yard cleanup (it had been empty a year) and some general maintenance; the home could be worth about $249,000. This would have been the perfect quick profit scenario. I would like to say that this had a happy ending. It did, but not for the newest wannabe investor I contacted from my list. He ignored my recommendation of offering $170,000 cash and instead insisted that I offer $160,000. I was the first in with an offer, but unfortunately for me and my buyer, the property received multiple offers within one week of being listed. It sold quickly to another buyer with only a slightly higher offer and a savvy investor will make a profit.
This is just a short overview of what is possible. A competent Realtor would be able to assess your goals and 'feed' you good deals as soon as they become available.
Don Fourtner
Coldwell Banker Town & Country
583 W Washington St Suite A
Sequim, WA. 98382
Sequim Real Estate
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