Some people are easily discouraged when they get into flipping houses.
They see the price of houses on the market and think...
"I can't buy a house for that price and still make a
profit. All the houses around me are just too expensive."
Here is the mistake they are making:
They look at a seller's ASKING price. Many sellers will accept Far less than asking price.
Case in point:
Last week a lady came to us looking to sell her house. She needed to sell quick because she owed back taxes, and the county was about to foreclose on her house and take
everything. (This is what happens when you refuse to pay property taxes for 5 years straight).
Her asking price was $159,000. We offered $90,000.
She accepted.
We get a deal with a huge equity spread and the home owner gets cash out of a house she would have lost to foreclosure.
It's a win-win.
Question for you:
Do you know of a house right now that's perfect for a rehab but the owner is asking too much?
Make an offer that works for you. It might be 50%, 40%, or even 30% of asking price.
You never know what somebody will accept for a house until you make an offer.
Here's the big takeaway:
Don't be afraid to make low ball offers. You may get a dozen "NO's" for one "Yes"
that leads
to a $50,000 deal.
