Profits for flipping homes are made When purchasing!
I know many people in the business who think that buying the property at any cost is what it takes to be good at flipping homes.
It is true that property is a great investment and could lead to life changing profits. But to insure that you make it big time. You must first learn the art of negotiation!
The competition you will be going up against for your purchase will be thin. They will however be the same kind of buyer as you. They will want to make as much profit as possible as you too, so the one with the best negotiation skills will walk away with the house.
I have beaten opponents for a house, who have much deeper pockets than me, and could have afforded a larger offer. Just like in the Godfather; you must make them an offer they can't refuse.
I don't mean you must put a horses head on their bed while they sleep to get the deal done. But you must make what your offering seem like a sound and safe deal. If you are buying with a mortgage, have it in place so you can say to your seller that you are a cash buyer and your ready to go.
When being shown around the property for a viewing, make sure you are lavishing the seller with complements. Even if the place is a dump, be sure not to outline all the wonderful changes you plan for their home. They may have loved the place they have lived in, and the thought of you meddling with it is bad enough, let alone you rubbing their noses in it.
Be charming and remember that buying the place as cheaply as possible is the single most important thing when it comes to flipping homes.