House Flippers? (percentage, purchase, sell, capital)

[sinny73]

I have to agree it would be a great time to buy a home to stay in, but flipping in this market would scare me. I would wait for the market to start to rebound.

[Beena]

Want to make more money in a few weeks then you made all of last year? Try climbing the PROPERTY LADDER!!

The ones who did it in 04 and 05 made a killing. Flippers are getting clobbered in 06, 07 and 08. Kirsten Kemp slap you silly for even trying as a rookie with no clue and no experience in this market of declining home prices....

oh what am I saying. Go for it.

[blakduc]

i would like to do the same thing as fliping, but only commericial properties until i get my development company off the ground, does any one have any feed back

[Luke9686]

I can say, flipping is alive and well. That is IF the person knows what they are doing. These T.V. shows of people "flipping", that was never reality.

Creative real estate can be done right now. You just may have to change your strategy a little. The real investors don't just hang around during an upswing, then leave when things turn sour.

That being said, I would be wary, as a newbie, in any market. The fact is that most fail in the real estate biz. In any market. Simply because it isn't like it's shown on T.V.

Like someone else said, buying a rental and renting it out for $100 above the mortgage will soon bankrupt you. True holding costs average 50% of the gross rents. The people I know people who do this full time, and hold MANY properties, will only buy a property if the rents (determined by the market, not what you put into the house or think its worth) are 2% of the purchase price. Meaning, if the average rent is 800/month, they wont pay a dime over $40K for it.

I can get you onto some great learning forums. Beware, any "guru" charging you insane amounts for their course will also soon bankrupt you. I met this couple at a local real estate investors club meeting who had spent $70,000 on a package from a well know guru. They still have not even made an offer on any properties.

There are many good strategies that work even in this market. For instance, you can put offers in on HUD properties and double close them to owner occupants. Many will say it can't be done, but I assure you it can and it does.

[scone]

I have been a flipper, but always lived in my homes as I was fixing them up. The upside of this is obvious-- you have to live somewhere, and if you can do the work yourself, it's convenient. I never could stand the idea of dealing with renters, but that's just me. The downside is drywall dust up your nose all the time.

I sold my last place and designed my new home from scratch, and now I'm sitting on it. It's sick, but now that I've got my new dream home, I keep sneaking looks at old houses! So I'm definitely getting the itch again. It's like a disease, you have to love houses, design, and construction.

As much as I would love to jump in, however, I think extreme caution is indicated. I've basically written off 2009, unless the deal of the century comes along.

[old_cold]

Originally Posted by scone

So I'm definitely getting the itch again. It's like a disease, you have to love houses, design, and construction.

Sure is.
I've been an unintentional flipper forever and am just getting too damn old to be scratching that itch but what a lot of tempting projects are out there right now.

[Jonotastic]

Flipping houses isn't as profitable as many of the tv programs show. They say...we bought it for $400,000 spent $50,000 in renovations and sold it for $500,000 giving them a profit of $50,000. They don't take into consideration all the hidden expenses, fees, insurance, and taxes.

[OneDayAttaTime]

Originally Posted by 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.

I think this is great advice. People who lose their homes in a foreclosure are going to have to live somewhere!

Originally Posted by forest beekeeper

Find a local retired electrician or plumber, half the time they already own four rentals, they have two trucks loaded with tools and parts and have three part-time workmen on call.

For 10% of the rent receipts, they will manage the property for you. Bill you for parts and appliances. Most of the time they will even advertise, screen and fill empty units for free. Or at worst they will want to pocket the first month's rent. Which is fine with me.

I like this advice, too. I had never thought about using an electrician or plumber!

[forest beekeeper]

Originally Posted by OneDayAttaTime

I think this is great advice. People who lose their homes in a foreclosure are going to have to live somewhere!



I like this advice, too. I had never thought about using an electrician or plumber!

Glad I can help.

[l.wilson]

I have 12 rental units and have flipped a few houses. Do you realize the up front costs to even getting into flipping. I have bought a few houses on the court house steps. You must bring cashier check for the entire price of the foreclosed home. Lenders are requiring such an insane percentage down for rental property I thought my lender was pulling my leg. The last flip I did (last year) I didn't make one penney in profit, I did sell and get what I put into it (and was very thankfull) but 3 months of work for nothing. Unless one has a lot of cash to inverst and sit on for a few years, I wouldn't even entertain the idea in this crazy economy.