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[quote=AroundTheBlock]My company flips about 3-4 residential properties a year.  Our main focus is commercial development, but we do residential flips if the market is there.

The first thing you need to realize is most people/companies who flip houses are paying all cash, and most of the time it's their own money (not loan/line of credit).

Secondly, for homeowners it's very difficult because most investors can inspect a house themselves without requiring a home inspection.  This means their offer normally comes with no contingencies (huge plus to the seller).

Lastly, if you are looking for a house that you can work on find ones in areas where the price of the house is close to the selling price of surrounding properties.  If neighborhood A has houses selling for around $350k, look for houses that are selling around $300k.  Most investors look to make a net profit of around $30-50k on a flip (or often times more).

It is difficult to compete with investors because normally they have a set crew of contractors who give them better prices on labor, etc.

GL[/quote]

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