046: How to Find a Great Deal on a House to Flip

I get many emails from listeners and readers about getting a great deal on rentals or flips. They see the deals I am getting and that I have 11 flips in one of the hottest markets in the country and wonder: how can I do that? It is not easy, it takes experience, and it can be stressful having that many flips at once. There are ways to flip houses in almost any market, and almost anyone can get a great deal on a home. It is not as simple as contacting a real estate agent and expecting them to send you ten amazing deals that same week. In this episode of the InvestFourMore Podcast, I talk about how I was able to buy my most recent flips, and many tips on how others can get a great deal on homes.

Can you get a great deal on flips in a hot market?

As many of you know, I have stopped buying rentals in Colorado. Prices are too high and I cannot make as much money on them, as I used too. Even though I have stopped buying rental properties, I have not stopped buying flips. I have 11 flips now and I am buying a 12th tomorrow. I am getting my systems in place to handle that many flips, including new contractors and management of those contractors.

On this podcast I focus on how I got those deals and how I am able to still flip houses when inventory is tight. The reason I can still flip in a hot market, is I do not care about the long-term prospects of a property when I flip. I plan to be in and out in 6 months or less. With rentals, I plan to hold the property for years and I am much more picky about what properties I buy. I use the same techniques in a hot market to buy flips, as I do in a down market. Although there tend to be less REOs, short sales and auction properties in a hot market.

Do you need to be an agent to get great deals?

I am a real estate agent, which helps me get many good deal. You don’t have to be an agent to find deals, but it certainly helps. If you are not an agent, you need to have a very good agent to help you. The agent does not have to be the most experienced, or know everything about investing, but they need to be able to work fast.

How do I get awesome deals to flip?

There are a few things I do to get awesome deals.

  • I know my market very well, so that I know what a good deal is.
  • I act very quickly when a good deal comes up.
  • I rarely have any contingencies.
  • I make cash offers, even though I sometimes use financing.

Acting fast and making very solid offers with no contingencies are the biggest things that get me deals.

If you want to see exactly how I search the MLS, what I look for when looking at properties, check out my quick start video training.