Have you ever heard the term REO? Or bank owned before? These terms refer to the bank foreclosure list kept by any bank and lists all properties the bank owns due to mortgage note defaults. This list could be a great place to find inexpensive, fixer upper type properties for the budding flipper; but beware, flipping homes is a risky business and if you do not do it properly the bank will just end up owning that house again, and that certainly would not make you any money now would it. All you have to do is a little research on the internet to find these lists.
I recently completed my first house flipping investment and made money! I started by calling area banks and obtaining a copy of their bank foreclosure list. I then viewed prospective properties and bid on one. My bid was accepted by the bank and we were able to close the deal ten days later. I was then able to remodel the house, add an attached garage and landscape the entire property. I spent approximately $35,000 on renovations and sold approximately six weeks later for a profit after fees and mortgage payments of $125,000! Now that is a very nice pay day!
