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Three Good Ways To Find Pretty House Deals
by Ron LeGrand
We should start with defining what a pretty house really is. It’s not the price that makes the definition. The house could be high-priced, but most people in the pretty house business work in a range from $70-$200,000. If you’re in a high-priced market such as San Francisco where a $200,000 house is rare, your range will be higher.
The point is, pretty houses start at the bottom end and go up. It’s not just expensive houses. My definition of a pretty house is any house requiring less than $5,000 in work to get it in a good, saleable condition. An ugly house is one that needs a rehab or a lot of repairs.
I want you to work both sides of the business and become a transaction engineer who can recognize a deal when you see it, whether it’s pretty or ugly. Don’t fall into the trap of trying to get so specialized that you turn your back on lots of other profits. There’s gold in both the ugly and the pretty house business. Besides…
You Can’t Find Pretties Without Finding Uglies And Vice Versa!
Most people start with ugly houses because they’re easy to find and understand. They either wholesale or rehab and retail. That’s OK, but it’s only a start. Pretty houses are easy in, easy out. Usually it’s get the deed and lease option to a tenant buyer. That takes a few days, eliminates contractors and reduces holding costs. Plus, it produces a few thousand dollars in front-end profit. A person could get used to this part of the business and easily make the decision to ignore the uglies.
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