If you are in the market for an investor property, but do not want to spend tons of money, you may want to look into buying a Flipper Upper. By purchasing a flipper upper, of course I mean a fixer upper, and the more fixing you need to do, the bigger the profit potential. The uglier the house or owner situation the more equity you can force into the deal. If this sounds like something you are interested in, you are in luck. There are thousands of flipper uppers available all over the country and the good news is most retail home buyers want a ready to move into property. The bad news is all the other investors know that with a little spit and polish these duds can be diamonds.
There are flipper uppers everywhere; all you need to know is where to look.
Listed below are some of the most common ways that you can find a flipper/fixer upper in your area.
1. The most traditional way of finding a fixer upper is simply getting in your car and scouring the neighborhoods that interest you. Investors like to call this 'driving for dollars'. By doing this you may not come across a lot of properties, odds are only about 5 to 10 in an hour's worth of driving, but you may find the one that really catches your eye. You are looking for neglected, unkempt properties, abandoned houses, FSBO's (for sale by owners) or homes with for sale signs in need of TLC in 'nice' neighborhoods. Remember, you are not looking for beautiful, you are looking for potential. If you do happen to find a fixer upper this way, make sure that you take down the address (to look up the owner on the tax rolls) as well as the name and number of the real estate agent if there is a sign.
2. Finding a flipper upper can also be done by searching the classified ads. This is also a more traditional method of finding a property. You can look for key words like: fixer upper, handyman special, needs work, or must sell. The best thing about searching for a flipper upper this way is that you will be able to search by location and price without ever having to leave home.
3. And of course you can search for a fixer upper online. There are two ways to do this. You can either search a site that offers listings from a variety of different real estate agencies, or you can visit the site of each independent agency. Either way, you will be able to find a lot of details on any fixer upper that may catch your eye. These sites offer information on pricing, as well as pictures of both the exterior and interior when available. By searching for a fixer upper online, you will ensure yourself of coming across the largest number of properties available in your area.
4. Find an investor friendly real estate agent, tell them exactly what you are looking for-in what area, price range, how much fixing up you feel comfortable doing-and let them do the exploring for you.
Overall, finding a fixer upper can be done in a number of different ways and to find a really great deal it'll take probably all the above. There are even more sophisticated, more profitable ways to search for investor properties we'll explore next time. These ways mentioned of searching for a 'flip' are all free except for the time invested. The time you invest should be considered part of your real estate education. Because the more you drive for dollars, the more houses you inspect, the more pricing you become familiar with, the more you'll recognize a real deal when you come across one. Instead of overlooking these options, why not give it a try? It does not cost anything to look, and you may find that flipper upper of your dreams.
