HOW TO FIND HOUSES TO FLIP ON REALTOR.COM

In this video I am showing you how I search for houses to wholesale and flip using the popular real estate website [ Ссылка ] . If you are wholesaling real estate in 2023 then you need to be paying attention to this because the market is shifting fast.

I use these searches with my students every day, to demonstrate and teach them how to understand their target market by seeing what is listed and active on the MLS.

Many realtors and new students (and wholesalers) do NOT search this way. Because of this, they have a hard time understanding what a wholesale deal is and are unable to recognize houses that are a good deal at a wholesale price. Instead what they do is offer whatever amount they need to appease the seller, and then they mark that up by a significant amount ($30,000 or more) and try to find a buyer.

I see wholesalers every day sending out deals that need a ton of work that are priced at retail prices (houses that don't need any repairs). Why would I buy a house that needs $50,000 in repairs for the same price as a house that is ready to move in? If you are only looking at wholesale deals that are sent out by wholesalers and are not aware what is going on on the MLS then you run the risk of getting caught paying way too much for a property.

Investors that fix and flip houses or buy rentals for a living know and understand this very well and know their target markets well enough to know what is and is not a deal. In some markets (like Miami) investor fever is so hot right now that newer investors are paying almost any price to buy properties because everything is going up and there is no inventory. Don't be that buyer.

Other buyers may bid higher than me and the wholesalers may sell their deals to them. These same wholesalers would argue that none of what I am saying matters since if you can flip the house and make money then so what. Like I said before that works now, but when the newbie buyers disappear (and they will), then the only buyers that will still be standing are the ones that understand pricing and what price they can pay and buy a property for. And wholesalers that have not built a relationship with that type of buyer will simply go out of business when the market turns and the newbie buyer disappears.

Right now the biggest issue with Wholesalers and the deals they are putting out on their deal blasts are that the prices do not represent a good deal for most investors. They are priced too high, and the markup is too much where the deal does not make sense to an investor. But yet people still buy these deals. Why? Because they believe the market will keep going up.

I never buy real estate because I think prices will keep increasing. I buy a property when I can get two things. Equity and Cash flow. If I cannot get both, then I will not buy the property. Buying on the hope that prices keep increasing is speculating not investing. Investing has a known certain outcome. For example I know that If I buy a 300k ARV house for 150k and spend 50k repairing it that I can sell it for a profit. And I know that if I keep it I will have equity from day one and I will cash flow if I rent it out.

I am NOT relying on the price going up. In fact, It makes no difference to me since I have equity and I can cash flow. If my goal is to put a 15 year mortgage on that property then in 15 years I will own it free and clear and the equity will be much higher and the cash flow will be much higher. In real estate, you make your money when you buy.

There are way too many new investors chasing prices higher and overpaying for properties. This won't end well for them because they don't have the discipline (and the patience) to buy right.

The three most important things to learn and understand well in your target market when you are searching for houses to buy to wholesale, fix and flip or keep as rental properties are:

1. The Dollar Price That Houses Are Listed At (sorted low to high)
2. The Number of Listings (inventory) and if that is increasing or decreasing
3. The Price Per Square Foot (under air) of houses sorted low to high.

If inventory is decreasing, prices will increase which will result in a higher price per square foot and a higher dollar price per listing.

If inventory is increasing, prices will decrease which will result in a lower price per square foot and a lower dollar price per listing.

So as an investor, you need to be watching inventory and prices very closely. If you want to learn how to get started wholesaling and flipping houses, make sure you find out more about the Wholesaling Real Estate Boot Camp which is coming up next month. Here is a link for more info: [ Ссылка ]

You can learn more about our boot camps and other Lex Levinrad Real Estate Training Events at [ Ссылка ]

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