Buying rehab properties is an art in itself. It is the first step of many in the process of working to fix and flip homes and deserves its own specialized category of planning, technique, and execution. It is paramount that you learn to keep your home construction venture running efficiently as you buy more properties.
Work with a Broker
Your first thought might be that working with real estate brokers will only cut into your costs but working with a broker can lead you to more rehab properties ultimately making you more profit. Some brokers actually specialize in foreclosures which may be in line with the kinds of potential rehab properties, you are looking to buy. Establishing solid relationships with multiple brokers who specialize in homes owned by HUD, local redevelopment authorities, banks and other finance companies can lead to many more properties coming your way.
Search for Foreclosures
You can also search foreclosure listings on your own. Online sites like Zillow list foreclosures, as well as pre-foreclosure properties. But there are also many other listings online, from municipalities, HUD, and third-party private companies. Scour the web to find them in your desired area. From there you can contact the listing agent directly to inquire about a walk-through and possible purchase.
Spy Something Yourself
Do it the old-fashioned way: search the neighborhoods you want to buy in yourself. Drive or walk around to find those little “for sale” signs in the windows — the kind that the buyers looking for the big real estate company signs on the nicely manicured lawns might miss. Sometimes these signs are put in the window by the homeowner themselves or by banks who are also interested in keeping costs low. All that matters is that they own the deed to the house, and that they’re willing to entertain an offer on it.
Build Your Network of Investors
In any profession these days, productivity is maximized through a combination of DIY and networking methods. Just because there are other investors out there looking to fix and flip their own rehab properties doesn’t mean they are strictly your competitors. You might lose out on one house to a higher bidder, for example, but if that higher bidder happens to be a wholesaler of foreclosed properties who can lead you to other properties in the future, that is a connection you need to make. There also will likely be groups of investors in your area that meet regularly and share information such as listings, tips, and experiences that you can benefit from.
If you live in the Anaheim area, we recommend networking with Hart Legal!
Establish a Solid Relationship with a Lender
Just as you build relationships with investors, look to build relationships with a finance company that has a reputation for funding quickly and easily. This type of lender should be able to give you preliminary pre-approval right over the phone.
Go with a lender that will give you an immediate credit line letter. This gives you credibility, and you can use it as a tool to put in all cash offers. Having an established lender on your team — in addition to your own cash fund — will allow you to make those quick offers immediately after finding your next investment.
Forming a solid relationship with a lender can lead to profits on several purchases and could be the difference between making a lot of money as a rehabber or barely scraping by.
“I’ve been a Real estate Broker and Investor for over 15 years. Aztec Financial has provided funding for several of my projects. The most important factors and services a private party lender can provide is timely funding and flexibility in structure. Aztec has never failed to fund my deals once a loan commitment has been issued. This gives me confidence to know once I make an offer, I can close the deal. The staff is overwhelmingly courteous to help you through the entire process, from execution of loan documents, servicing of the loan, timely inspections and the closing of your transaction. If you are a real estate investor looking for fast, flexible funding, I highly recommend Aztec Financial as your go to lender!”
– Kenneth B.
“I have worked with at least 5 of the top private lenders and Aztec Financial has been the best for me, with well over 40 transactions together Joel, Melanie, Kenny and the rest of the team have given me nothing but the best, Top notch quality service, no other private lender has been able to match what Aztec Financial does for me, I highly recommend Them,
Sincerely,”
– Gus I.
“Aztec Financial has been my go to lender for the past 19 years. They make it quick and easy without a lot of red tape. They understand the real estate investor and work with you on your goals. I have dealt with many lenders and have to say that the Aztec staff and customer service is also what sets them apart from the rest. ”
– Austin L.
“Aztec Financial not only offers great terms and fair pricing, they also go out of their way to ensure your success while providing great customer service. They are second to none.”
– George W.
“When your offer is accepted it is imperative that your lender is ready and able to respond. My last two transactions were accepted and Aztecs funds were ready to be wired in 48 hours.
Aztec has been dependable in funding more than fifty (50) transactions for my company.”
