Do you want to learn how to find houses to wholesale and flip on online auction sites? One of the number one questions I am asked by students is “how do you find houses to flip”.
In this video I show you how I find houses to fix and flip (and wholesale) on online auction sites (and from wholesalers). In this example the online auction site is Hubzu but I have also purchased homes this week from HUD, and on 2 other online auction sites so this technique works across the board on all platforms.
In addition to buying houses from online auction sites, I also buy a lot of houses from wholesalers. I probably purchase 50% of my houses from wholesalers and the other 50% are from online auction sites, direct mail and directly off the MLS. Inventory is changing though and as inventory tightens, the direct to seller model is still a great way to acquire properties. Many wholesalers utlitize this strategy and if a wholesaler has a good deal under contract that I could fix and flip then I am going to buy it regardless of their fee. That is the essence of wholesaling.
In the example in this video, I purchased the house from a wholesaler (who bid on Hubzu to get the house). I was bidding on the same house on Hubzu (which is how I know what he paid). The wholesaler bid higher than me and won the auction. Now that he had the contract to buy the house he was able to start marketing the house.
He called me up and said hey I hear you buy houses in this town. I said yes I do and he sent me the property. I immediately knew which house it was since I was bidding on the same house on Hubzu.
I agreed to buy it from him for $10,000 more than what he paid for the house. The way the transaction works, in order for it to be kosher he first has to buy the house and pay for it before he can sell it to me.
The way this is done is by “double closing” meaning he pays for the house and owns it and then turns around and sells it to me – and walks away with the profit of $10,000 (less closing costs).
I purchased this house in order to rehab the property and list it on the MLS for a profit. I am listing the house for sale on the MLS for $179,900. Since I am the listing agent, I will only pay a buyer’s agent commission of 3% (if another agent brings the buyer). The profit on this fix and flip should be around $30,000 (after commissions, fees, interest, repairs and holding costs).
I calculated the profits on this deal using my Rehab Property Calculator which I recently made available for my students at this link: https://www.lexlevinrad.com/rehab-property-calculator/
To learn more about me and our company and to register for a free training class on flipping houses visit http://www.lexlevinrad.com/webinar
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