Flipping homes is a great way to invest in real estate property. Even though it is a high risk investment option, it could bring you a tonne of money. Flippers are not exempt from making mistakes with their real estate deals, and this ends p costing them a lot of money. Some people may blame the buyers and sellers on the financial issues while in real sense it was their mistakes that got them there. Most of the issues are to do with the poor decisions real estate agents, who are the flippers in this case, make.
You can tell a successful real estate agent from an agent who has no idea what they are doing. First, you will see it in their resume and then on the online reviews. Real estate agents are normally the ones calling the shots on certain deals, which leave the financial decisions to be made up to them. You should expect to make minimal financial errors especially when you are the one calling all the shots.
New agents make the mistakes of letting the buyer control the narrative which can lead them to making great losses when they are trying to resell the home. If you show any sign that you are desperately in need of a certain real estate property, many people will take advantage of that. If you as the agent let the buyer take control, you will lose out on a lot.
Taking complete control of the situation helps both you and the buyer with the entire transaction. The seller is in charge of negotiating the deal on behalf of the client but you should also be involved because you are making payments on the property. When it is time to sell the property, the buyer negotiates the sale with their client but you are in charge of the property and get to represent yourself. Your profits all depend on the choices you make.
Buyers will use anyone to purchase the property but you should always make sure you ask for a pre-approval letter before you make any deals with them. A pre-approval letter from any lender will be good to work with but it cannot hold as much power as one from your own lender. Your mortgage broker or lender can tell whether the client will be able to make the payments on the property from their financial stability, application, income and all that. Dealing with them one on one will get you in a position to control the narrative.
Sometimes, an agent will drag the buyer around showing them different real estate properties without a proper pre-approval letter to show them if they are qualified or not. If the buyer wants to make the payments in cash, ensure they have an official statement with them before you make any decisions. The buyer’s agent should confirm that their client is using cash for the transaction. You should also ask the money deposit to be non-refundable so you can ensure they do not change their minds at the last minute.