Buying Fixer Uppers and doing a Small Kitchen and bathroom remodels is still one of the best ways to secure great returns on your investment. So, if you have been watching HGTV's home flips and are motivated to make money with Real Estate flips, then you need to find yourself a nice fixer upper. But finding a Fixer Upper in some markets such as Silicon Valley where homes have appreciated more than 10% in 2013 is not an easy task.
Below is the Top 5 sources of finding Fixer Upper homes in your local market:
1) Craigs List: Look for For Sale By Owner aka FSBO sales on CraigsList.org in your area. Be certain to consult a Real Estate broker or Real Estate agent who has sold homes in the city where you plan to purchase.
2) Short Sales: Short Sales are still a good sources of Fixer Uppers. Despite huge gains in home prices, some auction.com home owners still have mortgages that are much higher than the current value of their home. Some of the largest lenders including Bank of America and Chase are offering huge sums as relocation incentives that should motivate some owners to sell their homes.
3) REOs: REO stands for Real Estate Owned where the bank has taken possession away from the previous home owners as part of a foreclosure process. Even though REOs are listed at market prices, they still represent a decent opportunity for the investors who know how to negotiate with the banks on these sales. Focus on seasoned REOs. These are REOs which have been on the market longer than 60 days and could be sent to auctions. These homes typically need a lot work which means you can negotiate huge discounts from the lenders who are selling them.
4) FSBO: For Sale By Owner properties also offer opportunity to pick up a fixer upper that could a good flip. Our recommendation is however, to have a Realtor draft the purchase contract and help you with the escrow.
5) Auctions: If you are living in a Trustee Sale States such as California, Auctions also represent a decent opportunity to purchase Fixer Uppers for cash. There are many auction websites that have helpful information about participating in these auctions. One of the largest of these sites is Auction.com which has a large inventory of residential properties for sale across the country.
Good luck with your plans to make huge sums of money on Real Estate flips.