In over twenty years of flipping properties, I would say the question I get asked the most is, “Where do you find the properties you flip?” The answer I tend to give may seem rudimentary but it is what it is. I get 50% of all our properties from the MLS, 25% from broker relationships and 25% from 12 other lead generation avenues.
So 75% of the properties come from the MLS and broker relationships. Many new flippers think there’s a magic formula to finding properties, but it comes down to the basics many times. As far as the MLS, we typically scour the bottom 10% of all properties that are listed (from a price perspective) of every neighborhood we are active in, every week. We hire “Acquisition Directors” that each takes a certain area to physically inspect each of these properties. I personally inspect five properties per week on average or about 20-25 a month.
After inspection, we fill out a financial pro-forma on the property to see what we need to offer to make our projected annual rate of return of 20%+. Once we have that figure, we shoot an offer to the listing agent and go on to the next property. For every property we look at, we normally buy one.
As far as where we find the other 25% (14-different lead generation avenues), here’s the list:
There’s no real magic in finding the perfect flip. It comes down to dozens of inspections, dozens of offers and before you know it, you’re in front of the property that will pay handsome dividends. You just simply have to do the work!
Brian Kuzdas is the CEO and Founder of FlippingProperty.com, RE Management and RealEstateAuctions.com. For more information on Brian, you can review his LinkedIn profile athttps://www.linkedin.com/in/briankuzdas/. You can reach Brian direct at 650-575-7025 or [email protected]