5 tips for flipping houses after the bubble
Make full-price offers
Like any investment, successful house flipping hinges on buying low and selling high. But where the past few years may have seen opportunities to buy at deep discounts, today's flippers might have to pay full price. But according to Gordon, full-price offers aren't necessarily bad for flippers. The key, he says, is to be aggressive and do your homework.
"Full-price cash sounds great to the seller," he says. "But next comes a very detailed inspection. The investor has locked up the home for 10 days and can now use the inspection to come after the seller for funds."
According to Gordon, flippers in his area have been known to use the inspection period as an opportunity to examine the home for potential problems that could lead to a price reduction. Essentially, the flipper is making an offer first and negotiating second, he says. Naturally, there's a risk that you might not get the seller to come down on price. But if the financials of your offer are strong, a lot of sellers are reluctant to walk away from a good offer.