House Flippers? (fees, mortgages, loans, lawyer)

[baystater]

Originally Posted by HighPlainsDrifter73

If I was in this business, I'd wait a little while longer. Prices will be dropping for a bit longer. But of course, who can call the bottom and be right.

Agreed. I'm going to sit back and wait another 2 years before really jumping in. I think most place I'm looking at will hit rock bottom by then.

[8 SNAKE]

Out of curiosity, how many of the posters in this thread are actually involved in real estate investing (honest question)?

[baystater]

Originally Posted by 8 SNAKE

Out of curiosity, how many of the posters in this thread are actually involved in real estate investing (honest question)?

I'll be honest. I only have one property right now and I working on fixing it up slowly. It sucks when you have to work and go to school and try to be the next Donald Trump all at the same time.

I hope in the near future I will be able to buy more properties (mostly to rent) in the near future. We will see.

[HappyTexan]

Originally Posted by schmidt486

Anyone in the business of flipping homes? I am interested in the business and just wonder how to go abour getting info and starting out.

You're about 3 years too late.

[golfgod]

I've been doing this for almost 30 years. I've had a lot of rentals, and done any number of flips. I've taken a few losses, "broken even" a couple of times, and made a pretty nice (part time/extra income) living. I could have done it full time but I had a nice corporate job with good benefits and a wife who is VERY CONSERVATIVE/WARY of real estate investing.

I'd say that MOST of the people that invest in the "guru" courses, NEVER do anything, probably don't even read all books/watch all the CDs. Many of those that "try to get their feet wet" lose their butts quickly, or get discouraged when it turns out to be harder than they thought it would be.

The biggest mistakes that I see people making (or considering making when they post on the RE investment sites) are;

1. Thinking that a "small" positive cash flow means they'll make money. WRONG. Nationwide the average expenses on a single family house (SFH) are about 50% of gross rents. That's right kiddies 50%.

2. Thinking that buying a "fixer" for anything more than 70% of its fair market value (FMV) will get them a profit. The most you should pay is 70% minus the cost of repairs.

Another one is the common misconception that "tax losses" (dreamland) are the same as profits. They're not!

Study up for a year or two, then get into it. But you're probably better off in a good portfolio of mutual funds.

golfgod

[NorthmeetsSouth]

With all of the investment properties I've owned over the years, after I buy them and start working on them I stick a sign up in the yard. I don't actually start to market it until after it is finished, but while I'm there working on it I put a sign "For Sale or Rent by Owner" and people just stop by to see what kind of work is being done. I have sold and rented several of them that way.

[vincentnyc]

Originally Posted by schmidt486

Anyone in the business of flipping homes? I am interested in the business and just wonder how to go abour getting info and starting out.

be careful...next thing u know....the only thing that u will be flipping is a burger.

[forest beekeeper]

I would not buy to flip now.

I would buy rental units now.

Low prices are great! And there is not any shortage of renters.

[EMERALDGIRL]

I agree with the other posters..........great time to buy but not to sell.

[RoaminRed]

Buy, but not to flip. Buy now and in the near future for rental units.