I Can Show You How To Flip A House [806-290-1920]

April 25th, 2016

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Pamela Madore
Keller Williams
My credentials?  I have done both .  There is a wide range of money you can make.  Just like any other goals in your life,  set a goal.
Let’s first describe what “flipping” a house is.  There is really one word (flipping) that is used interchangeably for two kinds of flipping.
This can also be called “selling a contract”.
Here it is how it is done.  You find a house.  There are many, many ways to find houses.  FSBO houses,  ask people, knock on doors, find old empty houses and a myriad of other ways.  These will generally be  “distressed” sales.  In other words, the seller must be in a position to have to sell the house and is willing to discount the sale.
Next you must determine what the house is going to be worth to your buyer.  Most times these houses will be in some sort of disarray.  That means that the normal buyer won’t be able to buy the property because it won’t be financeable.  Your buyer is probably going to be an investor.
Your will use the same formula as if you were going to “flip” (see Flipping #2).
Your next step will be to make the seller your offer and negotiate to a place that has to be in your favor.  Your profit is made now.
It would be in your best interest to have already done some homework on where to find Flipping #2 buyers.  At this point you will take your contract to one or more of your buyers and “sell your contract” t.o the new buyer  The property is never in your name.  What you make on the “Flip” is the difference between how much you have “bought” the contract for and then how much you “sell” it for.
Need money fast?  This is a good way to do it.  Search for houses endlessly.  They are out there.  If you work at it, you can find one in a week.   The most I ever make “selling a contract” was $12, 000.  that might not seem like much but it was pretty easy money
This type of Flip is really a rehab.  The process is that you buy the house,  do the repairs and then resell it.
You will need much more homework to be done on this type of flip.
The formula is something like this::
  • How much will the house sell for all fixed up nice and pretty
  • How much will it cost to repair the house to sell
  • How much it will it cost for carrying costs–payments on borrowed money, insurance
  • How much “oops” to you want to add to the account for things that went wrong or are not seen
  • How much will it cost to sell the house
  • How much profit to you make to make
  • How much will your closing costs be both when buying and selling
  • How much can you buy the house for in order to following your formula
Once you have completed that formula the answer will be how much can you pay for the house.
If you do or are doing some of the work yourself  you may be able to cut down on some labor repairs.  If you are a good shopper you may be able to find discounted materials. There are ways to save money if you work at it.

This type of flipping is not for the faint of heart.  Especially the first one or two.  But once you get the hang of it and have a steady stream of houses that make a good profit you will be on your way to be called a “Flipper”.My husband and I flipped (rehabbed) a few houses.  The very first one I did all by myself I made $100,000 in pure profit.  That is the exception, not the rule.

Questions?  Call me.  I will help you find houses and I will be your Realtor to sell it in the fast way possible.  Time is money!

 

Pamela Madore
Keller Williams Realty
3955 S. Soncy
Amarillo, TX 79119

806-290-1920

Are Foreclosures A Good Deal [Be Careful] #5

April 22nd, 2016
Pamela Madore
Keller Williams Realty
806-290-1920
Are Foreclosures A Good Deal?
Many people think that a foreclosure is a great deal.  That may or may not be true.
Recently, there was a really good house in the Tradewinds.  My client and I overbid.  We were a cash buyer.  We got the bid and closed in 8 days.  Later I found out that there were 4 bids behind us.
When HUD puts a foreclosure up for sale they have several levels of timeframes that you can place your bid.  The first one is a lottery.  This one is for government agencies and other silly things.

Note: Property available when this article was published. 

The next level is for owner occupied bids.  I have seen this window of opportunity be 10 days or
more.  During this time you can put in a bid but the bids won’t be opened until after the opportunity ends.  To be clear, you could put in a bid the first day the property comes on the market but it will be 10 days or so before you know if you got the bid.
If no one gets their bid accepted during that time then it is open to the public specifically meaning investors.
What is a bid?  A bid is really nothing more than an offer.  For some reason the government decided to call it a bid.  I am a Registered HUD bid agent and can place your bid for your.  Very little information is needed to put in the bid but if it is accepted we have 48 hours to Fed Ex all of the documents they require, which is their contract, an approval letter from your bank and a copy of the escrow check.
What is an escrow check?  This is the amount of money that HUD requires you to put at the title company that will be used toward your down payment and closing costs.  If the property is less than $50,000 is it $500 and if over $50,000 it is generally $1000.
What about inspections?  Those can sometimes we tricky.  HUD leaves all of their houses with the utilities shut off.  If you want to do inspections, we have to get written permission and you have 48 hours to turn on and pay for  the utilities, have the inspection done and turn the utilities off again.  One thing to remember about this is that HUD always “winterizes” their properties. That means that they drain all of the pipes of water.  If they find a leak — the most common is around the washer house–they will not let you turn on the utilities.
Sometimes foreclosures are good deals.  But sometimes the unknowns outweigh what you think you are getting.  Often times during the time the property is put on the market to the time it closes people break in and do damage.  The most common is to steal the air condition unit.  The problem with that is that HUD will fix nothing and will most often not adjust the price.
You will need someone that is very familiar with HUD foreclosures to be protected throughout this process..   I do many HUD foreclosure properties and will do my best to see that you are protected and get exactly what you want.
Call me for questions and find out what is available right now.  Their availability changes daily.

 

Pamela Madore
Keller Williams Realty
3955 S. Soncy
Amarillo, TX 79119
806-290-1920

Sell Your Amarillo House Fast–{2015 over 2016}i

April 19th, 2016
Pamela Madore
Keller Williams Realty
A recent article written by Russell Anglin of the Amarillo Globe News has gathered statistics from different sources and has put together a pretty good summary of what is happening to houses that are selling and how that can also affect buyers.
Amarillo has 765 sales in the first quarter of 2016 which broke the 10 year record with the exclusion of 2008 when we had the housing boom.
The median house sale for 2015 to 2016 is up 6% from $141,750 to $150,000.  Median price is not the average price.  Median house sales is that the same amount of houses sold , in 2015 below  $141,750 and the same above $141,750.  In 2016 the number was $150,000/
What does that mean to you as a seller?  Priced right your house will sell very quickly.  If you are
looking for a bigger house in a high price range that also works because the interest rates are so low that you can buy a bigger house with the same payment.
For buyers, because of low interest rates and programs like the SETH programs, first time home buyers should especially be taking advantage of this boom.  Lenders have relaxed some of their underwriting guidelines which has make it easier to qualify.
Several incidences have happened to me personally recently.  A house that my clients were interested in, have 5 offers in the first 12 hours.  We didn’t even have a chance to go look at it.
I listed a house and the fist showing was 2 hours after I put it in the MLS.  The third person that looked at it bought it.  In two days.
Want to sell your house fast?  Call me.  We will get the job done for you.
Pamela Madore
Keller Williams Realty
3955 S. Soncy
Amarillo, TX 79119
806-290-1920