Investment Ideas: Salvaging Wholesale Deals

There are a number of ways wholesalers of real estate investment properties may find the deals that keep them going. Ideally, a good investment will be one where an investor can mark-up a property slightly and pass it on to another investor. One simple way to find these kinds of deals is by salvaging previous deals.

When a wholesaler’s property is under a contract, the “inspection period” is used to either sell it or get out of the contract, to ensure his deposit is refunded. During this time, they may market it to their own buyers who are on their e-mail lists and might even permit other investors to advertise their property. The initial investor is usually willing and able to split the profits of a deal with any investor who is able to deliver a buyer, or may require the investor to mark up the price.   

If a bank owned property, there may be less than 5 days to inspect the property and market it to their potential buyers. Here’s the great part: If the investor never secures a buyer, the listing agent will offer it to the public; oftentimes for less than the price that was offered to the investor!  Read more... (393 words, estimated 1:34 mins reading time)

Orlando Florida: Hollywood of the South East

The Orlando area is mainly known for it’s theme parks, world-class resorts, and beautiful weather. Not many people know, however, that Orlando is also home to several working television and movie studios, a thriving music scene, and a passion for sports. Orlando Florida is a virtual Hollywood of the southeast, teeming with celebrities from every entertainment field.

Movies and Television

With working film and television studios, it is only natural that celebrities would reside in Orlando. The area has had a history of producing famous faces. For example, TV’s Buddy Epson (The Beverly Hillbillies) was born in Orlando and attended Rollins College in Winter Park in the late 1920’s.   Fred Rogers (Mr. Roger’s Neighborhood) also graduated from Rollins College in Orlando. 

Actors such as Wayne Brady (The Wayne Brady Show; Whose Line is it Anyway?) and Wesley Snipes have their roots in Orlando as well. Wesley Snipes was born in Orlando and went on to become one of the most recognizable superstars in the world, starring in such films as the Blade trilogy, U.S Marshalls, and the Art of War. Wayne Brady graduated from Orlando’s Dr. Phillips High School and started his improv comedy career in Orlando.  Read more... (512 words, estimated 2:03 mins reading time)

Orlando Home Flipping Update For May

Address_____________   MFIP PRICE___List/Sold Price__  Status

7951 Winter Song dr           $69,000            $134,500       Sold

6440 Rockaway st               $49,000            $95,000        Sold

2415 Hargill dr                     $112,000         $239,999        Pending  Read more... (373 words, estimated 1:30 mins reading time)

How to Make Money Flipping Homes

Flipping homes in Central Florida has become a very lucrative enterprise. Real estate investors add value to a bargain property by performing a few choice home repairs. These repairs may include new bathroom tile, colorful landscaping adjustments, upgrade kitchen appliances, fresh carpet, and more. With a little time and a little capital, anyone can successfully flip a home in Central Florida. So if you're ready to tackle this profitable enterprise, then take a look at the following proven home-flipping methods:

•    PURCHASE, REPAIR, FLIP: The most popular home-flipping method is to purchase real estate that needs minor repairs, perform the repairs, which inflates the home value, and then put the home back on the market. It is very common for people to make around $25,000 from a single transaction using this method. If you decide to flip a home using this method, make sure not to underestimate how many repairs need to be performed and how much those repairs might cost. A thorough home inspection will help you evaluate any necessary repairs.  Read more... (315 words, estimated 1:16 mins reading time)

Home Flipping In Orlando Florida

Do you ever wonder what happened to some of those Mid Florida Investment Properties you passed on? Here is an update where these properties stand at the moment. I can’t share the contract price on the pending properties until they close. I will tell you that most of the offers are at asking price or more. We have a lot of rehabs almost ready to go on the market and I will keep you updated on the new and the pending properties below. The MFIP price is the wholesale price and the listed price is the price after the properties were rehabbed.  Address                                    MFIP Price      List Price     Status 537 W. Winter Park st       $130,000       $255,000   Pending 7951 Winter Song dr         $69,000          $134,900   Pending 6440 Rockaway st              $49,900          $99,500     Pending 1946 Colton dr                    $55,000          $113,900   Pending 3914 Pelican ln                   $112,000        $200,000   Pending 5107 Taunton dr                $67,000          $137,500    Pending 1832 Willow ln                   $82,000           $179,900    Pending 2013 Lake dr                       $114,500        $212,500    Sold 31 Areca dr                          $52,000          $122,900   Sold 7751 Boreas dr                  $75,000          $130,000    Sold   www.buymfip.com for properties just like these.

FHA – Flipping Rule Waiver If Value Increased More Than 20%

For property sales prices that are 20% or more above the Seller’s acquisition cost the following must be performed:  Keep in mind that if the value increases by 100% or more, a second appraisal is required:

• Appraiser must indicate the Seller completed legitimate renovation, repair and rehabilitation work on the subject property to substantiate the increase in value. 
• If the work was not performed, Appraiser must provide appropriate explanation of the increase in value since prior title transfer;

AND  Read more... (265 words, estimated 1:04 mins reading time)

• The Lender processing the loan must order a property inspection report and provide a copy to the purchaser prior to closing. Cost of this inspection may be charged to the Borrower.  The inspector must not have any interest in the property or relationship with the Seller and may only be compensated by the Lender.  The inspector may not compensate any one for the inspection referral or be compensated for making referrals or recommending contractors to perform any repairs recommended by the inspection.  Property inspections must include, at a minimum, the following:
• Structure, including foundation, floor, ceiling, walls and roof;
• Exterior, including siding, doors, windows, appurtenant structures such as decks and balconies, walkways and driveways;

5110 Old Cheney Highway Video

The Maitland Flip

The Maitland house is now finished and it turned out better than I ever imagined. Randy, the owner of this flip used his custom home building skills to turn this dated home into a beautiful master piece. This home had a lot of quirky areas that Randy had to get creative with. This Maitland home was purchased from Mid Florida Investment Properties for $130,000 and is now currently on the market at $259,900.

Here are some of the repairs.

The roof was replaced by Randy, some helpers and a contractor. To keep down the costs Randy and his helpers tore off the roof and covered the roof. Randy rented the dumpster himself and bought the materials that were delivered to the home. Randy then had his licensed roofer install the new roof. I have done roofs like this in the past and saved money. These days I flip multiple properties at a time and hire a licensed roofer to handle the whole job. Most of the homes I rehab are in the 1500 sqft range and usually run around $5000. My last roof cost me around $8000 and the home was just over 2500 gross sqft.  Read more... (561 words, 14 images, estimated 2:15 mins reading time)

Miguel’s Azalea Park Flip (part 2)

Miguel has completed his flip that he purchased from Mid Florida Investment Properties about 3 month’s ago. Miguel listed his property with my broker Sand Dollar Realty Group and we have a full price offer after 2 day’s on the market. I actually had 3 offers on this listing in 2 days and Miguel will be earning  a nice payday at closing. Miguel will net a profit  in the $45,000 range on this flip and this is the 3rd successful flip this year Miguel has bought from MFIP. I had several investors pass on this property because they said the price was too high. Miguel has proved that this property was a good investment if you consider $45,000 a good profit on a flip. Investors that can make quick decisions and move on properties before it’s too late are cleaning up right now.

Here are the three most common mistakes that stop investors from being successful in today’s market:  Read more... (832 words, 16 images, estimated 3:20 mins reading time)

Why Buy From Wholesalers?

Wholesaling is finding properties, getting them under contract and selling them to other investors or buyers. I wholesale because I find several homes and can only fix up so many at a time. This is another reason I actively search for cash investors to partner up with. You can check out our Real Estate Consulting Services for more info on working with me.

Retailing is what you see on TV shows like “Flip This House” and “Property Ladder”. Retailing homes is where the bigger profits are made and it takes more time and effort. Right now the average day on the market is around 100 days. This limits the average flipper to around 4 properties per year if they’re using their own cash. Flippers using hard money are able to flip more homes and make more money.

Hard money is a high interest loan from a private investor. The interest rate usually runs between 12%-16% and the points can vary from 1 to 9 depending on the size of the loan. I use www.barksdalefinancial.instantlender.com and they charge 1.5 points with a 1 year 16% interest only mortgage. I recommend getting your money lined up first before you start looking at properties.  Read more... (541 words, estimated 2:10 mins reading time)

Understanding REO Properties

Real estate owned properties (REOs) are foreclosed properties that are owned by a bank. Why are these properties owned by banks? 1) Because the homeowner was unable to pay off the mortgage. 2) Because the property failed to sell at a foreclosure auction.

Central Florida REOs are attractive to for several reasons. One of the most important advantages is that all of the home’s liens (property-related debts) are removed once it becomes an REO, and all of the property’s taxes are paid in full.

Some Wonderful Advantages to Buying an REO

•    REOs can and should be inspected prior to signing a contract.
•    The lending bank will always restore the REO to at least stable condition.
•    The bank lender will often offer an allowance for certain repairs to the home.
•    Most REOs will include appliances.

All REOs will either be sold by the bank itself or through an established broker. As a result, buying an REO requires a specific body of knowledge and expertise. Make sure you find a real estate agent with REO experience.

Since REOs have been passed up at a foreclosure auction, and they are typically in need of some repair, they may be purchased at an extremely low price.  Read more... (266 words, estimated 1:04 mins reading time)

Miguel’s Azalea park flip

Miguel bought this property from Mid Florida Investment Properties for $47,000 and plans to sell it for $115,000 -$120,000.  This property is a 3 bedroom, 1 bathroom home and 1600sf with the garage converted. Miguel plans on turning the garage conversion back into a garage again. This home also has a large laundry room that will be used for a master bath and smaller laundry area. Miguel is a seasoned flipper and will turn this dated home into a gem within a month. I will keep you updated on this property through the whole process.

Here is a nice before shot of this stylish country kitchen. The wallpaper on the wall was the first rolls of wallpaper ever created.

It looks like the wallpaper lives to see another day. The rest of the kitchen is another story.

Jose hard at work.

Here is a before shot of the only bathroom.

Here is what is left of the bathroom. I have personally partnered up with Miguel on flips before and this has to be the first time he has left the toilet. Good job, no more workers running to the store for bathroom breaks.  Read more... (301 words, 9 images, estimated 1:12 mins reading time)

Make Money Flipping Homes in Florida

If you are wondering whether you can still make money flipping homes in today’s economy; the answer is yes. Making money on any investment deal is just a matter of doing your homework, calculating the potential risk against the possible gains and making the decision that you are going to make it work for yourself.

In today’s market there may be different variables then there were several years ago, but there is always an opportunity for the smart investor to profit. The key is to develop your own house flipping strategy and stick to what works for you.

Flipping a home, basically means that a property is purchased, renovated or fixed up in some way and then put back on the market as quickly as possible at an attractive enough price to make a quick sale. According to real estate statistics, the market has already picked up. In fact, there has been a 37% increase in sales in the Orlando area when compared to last year’s figures for the same month. This is good news. Prices are still at an all time low and the market is saturated with inventory. Home buyers have a lot to choose from right now. As a home flipper, this should give you some direct insights and ideas to make your own investments as lucrative as possible. Here are some solid tips that will help you make money flipping homes in today’s economy:  Read more... (545 words, estimated 2:11 mins reading time)