Too late to get Home Flipping? (contractor, agent, real estate, purchase)

[SDnoobtrader]

We just sold our San Diego hoke for top dollar and looking at where to put the mo
Ty to work for us

We found a distressed property in Chula Vista rhat our agent says wan flip in 90 days.

Supposed these ate the numers

ARV $750,000

Purchase $500,000
Repairs $100,000
Commisom and fees $ 60,000

Profit. $90,000

I kept hearing we are going into a recession and the housing marker is going to crash b

What’s you guys opinions ? Too late to get in ?

[oregonwoodsmoke]

I'd just be really cautious. I don't know what the market is going to do and I certainly do not know anything about the San Diego County real estate market. You can still flip in a down market, but you must be very careful with the figures when you are budgeting.


Did you get actual quotes from contractors or are you taking your agent's word for it on what repairs will cost?

[ticking]

Originally Posted by SDnoobtrader

We just sold our San Diego hoke for top dollar and looking at where to put the mo
Ty to work for us

We found a distressed property in Chula Vista rhat our agent says wan flip in 90 days.

Supposed these ate the numers

ARV $750,000

Purchase $500,000
Repairs $100,000
Commisom and fees $ 60,000

Profit. $90,000

I kept hearing we are going into a recession and the housing marker is going to crash b

What’s you guys opinions ? Too late to get in ?

One question I always ask myself is why is agent giving me this great $90,000 opportunity?

If I had a near sure fire $90,000 dollar opportunity, I'd keep it 'in house'. I'd want the commission and the 90k profit.

[moguldreamer]

House prices only go up. A realtor told me that, so it must be true.

[16 Acres]

Not sure about CA but around here new home builders and real estate investors are in the early stages of getting stuck with them. Panic is starting to set in.

[Parnassia]

Opinion? If I were you, I'd have someone else prepare any contracts/documents. Careless mistakes will cost you.

[GoAmericaGo]

I think it’s the same as any other investment. If you’re ok with the chance of LOSING ~$100k than maybe take the gamble. A person could invest $600k in the stock market and lose $100k tomorrow…same for investing in a house and the 2-3 month turnaround time/unexpected costs.

[Used2BeeHere99]

So $150k gross profit of which all the risk is on you, then if it works 40% of that goes to your agent. Seems like a great deal for your agent.

[SDnoobtrader]

These are the revised numbers

[Listener2307]

Originally Posted by SDnoobtrader

These are the revised numbers

To me, the real wrinkle is in those HORRIBLE sales commissions. What on earth does a realtor do that makes it worth a $40,000 commission!?