Buying Orlando Investment homes with the intention of fixing them up and selling them for profit can be a very lucrative business but you have to know when to buy and when to walk away.
In addition to being an Orlando Realtor, I’m also a re-habber. As a matter of fact, I was re-habbing houses for 10 years before I ever became a real estate agent. In that time I’ve learned quite a lot about flipping houses both what to do and what not to do.
The tough part is getting the homeowner to sell you the property for the right price based on the repairs you have to make and still having enough room to make a profit. Following are some tips on buying investment homes at the right price.
Comparative Market Analysis- Whether you’re dealing with a lender or an individual there’s usually some negotiating involved before both buyer and seller come to terms. I use every tool available to me in order to convince the seller why I’m offering what I’m offering. In addition to preparing a CMA [comparative market analysis]
Contractors Estimate- It’s one thing to spew out numbers to a seller of what you think you’ll spend on repairs to the property, but putting it in writing carries a lot more weight. Bringing a professional contractors estimate to the negotiating table not only shows that you’re serious, but it also shows that you’re an authority on re-habbing homes. When people consider you to be an authority on something, they tend to be more inclined to believe you.
Create Rapport- People like to do business with people that are likeable. I’ve had situations where I ended up getting a deal not because I was the highest bidder, but because I created rapport with the seller. Sometimes the reason people need to sell their home is because of a financial or personal hardship. And many times these people just want to tell their story to someone that is willing to listen and sympathize with them.
The “all business” type of investor that storms through the house and barely acknowledges the seller let alone listens to their story won’t make nearly as much money as the investor who takes his time with the seller and listens to what they have to say.
By taking a little extra time with people and trying to create a bit of rapport with them will not only make you a better negotiator, but you’ll feel better about yourself knowing that you helped someone out just by listening to them. If you make it not about the money, you make more money!