Posted by: Doug Pretorius
02/08/2005, 10:42:36
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Scott, there are a couple of things:
1. Your earnest money on a retail flip is $1
2. Contrary to popular belief the MLS is not the king of buyer sources, in fact it's not even the #1 source for agents according to a recent poll.
3. Don't guarantee to purchase the house for a certain price. You can use a formula like 5% below the best offer you get.There are also some advantages to being a flipper over an agent:
4. No association fees
5. No commission splits or desk fees
6. Very few limits on how you structure your deals
7. And let's not forget the fact that you don't charge commissions. Sellers like that. The way I see it the financial risks and rewards are virtually identical between retail and wholesale flipping. The main difference is that there are tons of nice houses but very few run-down houses that you can get cheap enough. On a personal note I prefer to tour and sell clean, tidy, well-kept homes rather than crawling through rotting garbage with a flashlight trying to estimate repairs. Of course the installment sale/lease option niche is still a good one, no argument there!
Modified by Doug Pretorius at Tue, Feb 08, 2005, 10:43:57
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