And like many investors he knows the simple wholesale/rehab formula which is to buy a house at 65% of the after repair value and then subtract the repairs, etc.
However, if that’s where you stop, you’re in big trouble and you might not stay in this business very long.
via Bigger Pockets
After three years as a full time real estate wholesaler, I’ve pretty much made every mistake in the book, and have learned some valuable lessons in the process. Following are five wholesaling tips that I’ve picked up while out in the trenches:
via Bigger Pockets.
In a post-recession America rife with foreclosures and upside-down mortgages left over from the housing crisis, many cities and towns are stuck with houses so run-down they’re almost uninhabitable. In some neighborhoods, they blight entire blocks. Some cities have begun to bulldoze them, but here’s another option:
via CSMonitor.com.
Earlier this month, the Housing and Urban Development Department which oversees the Federal Housing Administration stepped up their effort to curb the foreclosure crisis by vowing to speed up the resale of foreclosures. This week comes the announcement making it official that from February 1, 2010 through February 1, 2011, the FHA is lifting the rule that prohibits insuring a mortgage on a home owned by the seller for under 90 days. This rule has been informally called the “anti-flipping rule.”
For every investor buying, renovating and selling properties, it has been like one big party! One where the sponsor (Government), the guests (you and I) and the drink of choice (renovated homes) were all available to make for one hell of a good time, not to mention some great profits! And with the expiration of the Home Buyers Tax Credit, our party may be over!
Step #1
Choose a farm area and determine who the active investors are in this particular part of town. There are multiple ways of finding out who the active wholesale buyers are in any given neighborhood, some of which I have written about in this article, and also this one.
Buying up foreclosed and abandoned homes, renovating them and selling them to first-time buyers is an unlikely business for a local government, but it’s one that South Florida officials have become heavily invested in this year.
via MiamiHerald.com.
Flipping was also given a boost in February when the Federal Housing Administration temporarily suspended its “no flip rule,” which prohibited people using FHA loans from purchasing properties from sellers who had owned the homes less than 90 days. The one-year suspension was designed to give the housing market a boost
via latimes.com.
