how can I get a contract to buy a house at a low cost and sell low to an investor to make a profit ?

Question

realestate investment knowledge

Answer 1

Here are the steps for what you want to do:

1 - Find investors in your town that want houses and can pay X dollars for them.
2 - Do your legwork and find houses that meet their qualifications, that you can buy for
(X-Y) dollars.
3 - Put the house under contract. With an option period, during which time you Can back out. Buyer is "G Kinard and/or assigns".
4 - Show this house (maybe photos or video) to the investors, and ask for Y dollars to assign the contract to them. They can buy the house then.

This way, the investor who is actually looking to own a property does, and you get paid sort of a "finder's fee".

Good luck. I'm just starting to try this. I'm at the stage of meeting investors, and getting to know what they want. I've been a Realtor for 14 yrs, and I can find the good deals.

Answer 2

Hire a professional Realtor with a lot of expertize on foreclosures and investment properties. Careful with flipping. You might get stuck with a house and the mortgage later on. Remember right now the housing industry is suffering a downturn. It is the first time in seven years that homeowners are selling cheaper than they bought. Do your research before jumping into something

Answer 3

What you want to do is called wholesaling. You just want to make a contract with the seller and then sell that contract to some other qualified investor. In this strategy, you never own the house, therefore there is never anything out of your pocket.

Answer 4

Normally, if you buy a house at a low cost,you wont be selling it at a low selling prices to a investor,you will be selling it at market prices or slightly lower.(as an investor point of view)

Answer 5

Careful with flipping. You don't want to be stuck with property you can't sell or afford. Check the areas for foreclosure rate, as some areas are high right now. You can find deals from foreclosures as well as people wanting to sell their home cheap because they need to move asap.

Answer 6

Teran said it best. Just use a dollar as an option fee to make it legal and you'll be fine. Worst case scenario, you lost a dollar and your time.

The contract is called an "assignable purchase option".

Regards

Answer 7

The response from teran-- was perfect!
I could not have said it any better.

Yes-- I am an investor:)

Good Luck!

Answer 8

government foreclosures