An excerpt from the upcoming book

"Rehabbing For Dollars" by Randy Lee

Begin with the END in mind: What will we sell?

Now that we know that the keys to our Fix & Flip deal are 1) Quick turn-around and 2) Ready supply of (preferably captive) buyers, it is time for us to determine WHAT is the best type of property?

In the markets that I most frequently operate, the best Fix & Flip properties are single family, free-standing houses with at least three bedrooms and two full baths. In other parts of the US, there will be different specifications.

The fact is that the Fix & Flip concept can even work with commercial or industrial property, providing you can turn it around quickly and there is a supply of willing, qualified buyers.

If you are brand new to this - or if you just want to bolster your belief in your plan, you can acquire supporting evidence from these three basic sources:

Other Investors: The fact is there is only so much time in a day and there are generally more deals to be done than any one investor would have time to do them. I recommend (read more in later chapters) that you join your area REIA (Real Estate Investors Association). Visit http://www.creonline.com/ for a list of groups all around the US. There is likely one near you already! In REIA's you will find fellow investors of all levels of experience. Many will be willing to share their knowledge and some their resources and contacts! This is such a vital tool to your success as a real estate investor that, if there is not one in your area, I strongly recommend you consider starting one! (For more on this see Chapter 19) Once you are involved and feel comfortable with some of your fellow members, start asking questions. Learn what sells fastest and why. Learn what doesn't and why not. Get as much input as possible though. When a pattern starts to form, you are likely on to something. ...By the way, if you don't already have your teammates, such as your REALTOR(s), Mortgage Professional(s), Appraiser, Property Manager, Handy Man, Attorney, Accountant, Plumber, Electrician, etc. ; this is a great place to get referrals. Again, look for a pattern.

Real Estate Agents: The boom years of real estate sales, combined with the numerous years of favorable interest rates, has created an over-saturation of licensed real estate agents in most parts of the US. This can be a benefit or a curse. The curse comes from agents that don't do their homework and/or are not looking out for their client's best interest; resulting in over-bidding and emotionally driven buyers competing for your deals. The benefit is, due to all of the competition, you can find some quality agents willing to help you - providing you are willing to be loyal to them (see more on this very important point in Chapter 13). A great way to discover whether or not a prospective (for your team) agent is knowledgeable and hungry is to conduct a telephone survey with them regarding Fix & Flips!! This can truly "kill two birds with one stone"! You'll learn more about your market while screening prospective team members!! (More in Chapter 13).

Mortgage Professionals: This group includes employees of Banks who originate mortgage loans and self-employed mortgage brokers who originate loans using the resources of many lenders. Again, these folks are going to want to know you are likely to place some of your business with them once you have a deal under contract. Like real estate agents, all or part or their income is dependent upon deals closing. If they feel you are a good investment of their time, they can provide much valuable information. Through their contacts, they may know of deals that are not available to the public - such as owner financed properties, as well as other insider tips. In addition to hoping to finance your deals when you purchase (assuming you are not paying cash), the mortgage pros want to finance your deals when they go to market as well. Forging mutually beneficial, relationships with these folks will garner you a valuable ally when it comes time to market your property! If you team with the right ones, they will be looking out for your best interest each step of the way - with their eyes on the flow of repeat business that you represent. ...Don't forget, there needs to be a carrot at the end of your stick.

...Please check back from time to time for more excerpts. See more at my publisher's web site today. Visit: http://www.purpose.4t.com/

-------------------------

Randy Lee is the author of the best selling educational course for real estate investors "Short Sales: The Secrets & Strategies of Pre-Foreclosure Investing". Randy is an active investor and a licensed real estate agent in the states of Alabama, Georgia and Tennessee. In TN & GA he is an Affiliate Broker with ERA/Central Real Estate of Chattanooga and in AL, Randy is an Affiliate Broker of Keller Williams in Huntsville.