Sell Now, Flip multiple Short Sales
Definition: a short sale is when a Seller wishes to sell below what’s owed and the bank agrees.
Strategy: Sell your house now to get the equity (assume $200,000). Use the equity to flip short sales.
The average profit on a flip is 10%. Therefore, you want to flip homes at the top of the price range, just before the point where sales slowdown. As an example, in Phoenix home sales start to slow above $650,000. Knowing this, we would target homes with after repair value between 500k and 650k.
But there are no short sales! That’s what your thinking. It is true there are fewer short sales just now. So increase your offers. I would pick 10 Cities across the Country, hire a Realtor in each, instruct your Realtor to make 1 offer per day on short sales that are stinky and nasty at 65% of after repair value.
With this strategy, you will be making roughly 300 offers per month. I gotta think you can get at least 2 per year. Now let’s do the math.
Math Example: (excludes closing costs)
Sale Price $600,000
Profit per Flip $60,000
Flips per year 2
Total Profit/year $120,000
You leveraged your $200,000 equity to make $120,000 free and clear profit in 1 year. Outstanding! This is the kind of out of the box thinking we teach. If you need more information or just want to chat about equity leverage with buying and selling homes. Feel free to call.
Buyers get: Sellers get:
FREE Home Inspection 5k
Flat Fee Listing
FREE Termite Inspection FREE Home Inspection
FREE Home Warranty FREE Termite Inspection
Best,
Geoff Nowlin, Phoenix Realtor
480-466-3737
