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Good luck to you. I have a feeling you and your family of investors is gonna need it.
1. People here sounded like because my wife and i have white collar jobs, we already have 2 houses, why do you need or want more, :-). seriously?!
Flipping house is not a getting rich quick scheme. flippers take a huge amount of risk, renovate the house and sell it for profit.
2. it was our first rental, we wanted the house to be rented as quickly as possible, so we decided to hire an agent. Down the road, once i get my own real estate license, i will learn how to DIY. The key here is find out why the other agent was able to rent the property out in a day, but the first agent that i hired could not do it in over 1 month.
3. My wife and i actually went to open house this afternoon and saw a couple flipped houses. Base on what we saw, I really believe if we can buy the right property, keep the cost down by finding the right suppliers for material and put some sweat equity into it, it can be profitable. Whether we can make it happen or not, only time will tell.
1. People here sounded like because my wife and i have white collar jobs, we already have 2 houses, why do you need or want more, :-). seriously?!
Flipping house is not a getting rich quick scheme. flippers take a huge amount of risk, renovate the house and sell it for profit.
2. it was our first rental, we wanted the house to be rented as quickly as possible, so we decided to hire an agent. Down the road, once i get my own real estate license, i will learn how to DIY. The key here is find out why the other agent was able to rent the property out in a day, but the first agent that i hired could not do it in over 1 month.
3. My wife and i actually went to open house this afternoon and saw a couple flipped houses. Base on what we saw, I really believe if we can buy the right property, keep the cost down by finding the right suppliers for material and put some sweat equity into it, it can be profitable. Whether we can make it happen or not, only time will tell.
1. Why do you need or want more? Because a steady cash flow stream in the hold long term rent tactic from multiple properties beats house flipping windfall. And you don’t always get a windfall because of housing changes you can be left holding a big bag of liability. Regardless you’re already telling us you’re stretching to get the down to buy by having to count on numerous people to help you.
Do you have a actual business plan? You keep saying once I get my license I’ll be able to do this that and the other. Getting a agent license doesn’t magically teach you all that’s needed to flip houses. Neither dies knowing how that one agent found a tenant in one day while the other didn’t.
As a investor, I would want to know how long am I going to have my money tied up and what my ROI is. What and how are you using the money. What kind of experience do you have and what’s your track record. How many properties have you flipped and what was the ROI on those properties. How long did it take to sell.
If your family isn’t asking these questions (and they probably wnot because they just see getting all that money on the sale) they have no idea and I see a lot of emotional drama in your and their future. Especially if the costs go up or profits aren’t what you said.
House flipping is a get rich quick. It’s very risky in the first place especially more so for a first time flipper who doesn’t know real estate or from what I’m gathering DIY projects. Do you have tools? Because you’ll need them. I have literally about 12,000 dollars if not more in tools. Generators, table saws, cordless and corded drills, ***, sawsall circular saws, grinders, hammers screwdrivers, nails screws, paint brushes, paint gun caulking guns, jackhammer, plumbing tools you name it,
You’re not goingbto be renting these tools all the time. And good tools aren’t cheap. And crappy tools make a job harder and do not work as well. Cut a finish cabinet filler piece with a Dewalt Mikita or Rigid table saw and cut the same piece with a Chinese bargain basement saw. Now try installing that. See what I mean?
There really are very few successful flippers out there. Most going into it think they can handle it, get in over their heads and lose their asses financially. Believe me I was called out to fix what these supposedly upgraded houses. Sometimes the flipper themselves called because they were in over their head. Lots of times I had to threaten with a lien to get paid.
2. The reason the agent was able to get it rented in a day was because he already had clients lined up and he was a go getter rockstar.
The first agent didn’t care and used your house to get other applicants placed with his other clients.
No two agents are alike and you could of hired the laziest one by mistake.
3. Getting the materials at cost or knowing where to go isn’t something that’s just gonna happen because you got some license or decided to flip houses.
First of all you will need to get a resellers license and start accounts if you want to get jobber prices. Those so called contractor warehouses open to the public are not the cheapest.
Realistically how much actual experience do you have in plumbing, framing, electrical, roofing, drywall, tile, cabinetry, and all that remodeling refurbishing a house entails? Do you have a truck?
If you say no, none or little really step back and look at the whol3 picture. You’re fixated on the money and not seeing everything.
I can’t tell you how many houses I walked away from. All flips all shoddy just absolute **** work. All wanting 100k for doing paint, crap flooring and absolutely no work done to code. Not one has permits pulled for the work. I couldn’t run away fast enough. I saw one house that I was interested in. Guy did a great job on the house. I researched the guy. It was a professional flipping company. It was the only house I entertained buying. I didn’t because the neighborhood was run down.
One flip that stood out
In one house the foundation was settling on the east and west sides. So the upstairs floors were bowed. I kid you not you could feel the elevation change as you walked in the room and walked to the exterior wall.
The exterior patio cover was nice. Too bad the framer completely missed hitting the rafter when he nailed the 4x8 plywood so all these ail heads were sticking through the plywood. And I’m talking row after row after row. The nice touch was the Romex wire stapled to the eves to feed the exterior lights that were mounted with 4s conduit boxes to the exterior of the house.
Not to mention the 30 inch wide stairs with no banister or handrail leading to “the upstairs study” that had again I kid you not AC ducting coming from the attic through the ceiling 8nt9 th3 floor feeding the downstairs. And the agent had the balls or **** really to say it’s nice.
The la7ndry room was in the kitchen. The kitchen floor was exterior brick veneer. Guy just threw whatever he could get cheap.
That was a flip that stood out. I feel sorry for whoever bought that house.
Is something disastrous going to happen to me potentially? I have a full time job, me and my wife actually thought about buying a restaurant or something, we both worked in the restaurant before doing part time jobs, but we cannot see ourselves quitting our current jobs and start working in the restaurants full time. If we are currently jobless, maybe we will consider, but we are not.
After discussing how to generate more income, we felt like besides landlording, we should also explore the option of flipping houses, my brother in law and his wife are also extremely interested.
Fastest way to lose a million dollars is to open a restaurant.
Quote:
Originally Posted by some1livesinamerica
3. Flipping the right house is not easy, otherwise every1 would be doing it. But if every1 starts doing it, there will be no money to be made.
First house that we flip will be the hardest, after doing all the work and sell the house, we might end up losing $10k, $20k or even more, but if we can learn something from our mistakes and use the knowledge to help us when we flip a 2nd, 3rd house, i have no problem making the $20k mistake.
Every time you write something I keep wondering if you are for real.
I am a successful agent and my best client flips houses in the million dollar range and has done so for years. He's probably flipped 50 houses in the past 30 years. Do the math.
Do you have a bachelors degree? It is a requirement for a real estate license in Texas.
What are the requirements for a contractors license in your city? Does your brother in law comply? What happens if you find a good deal in July and he's in Canada? Do you understand the maximum stay restrictions in the US for Canadian citizens?
Fastest way to lose a million dollars is to open a restaurant.
Every time you write something I keep wondering if you are for real.
I am a successful agent and my best client flips houses in the million dollar range and has done so for years. He's probably flipped 50 houses in the past 30 years. Do the math.
Do you have a bachelors degree? It is a requirement for a real estate license in Texas.
What are the requirements for a contractors license in your city? Does your brother in law comply? What happens if you find a good deal in July and he's in Canada? Do you understand the maximum stay restrictions in the US for Canadian citizens?
Do you really believe that i spent $500 to take a real estate class without checking the requirements for becoming a real estate agent. To answer your question, I do meet all the requirements for becoming a RE agent, actually graduated with a BS in electrical engineering from a top 10 engineering school.
I am not aware that you need any type of license if you want to renovate your house. I do aware if you want to change the layout of the house, a permit is needed, will double check on this with the city in the near soon.
No, we won't be ready to flip a house in June or July, there are lots of things we need to do and prepare before we flip. Quiet honestly, at this point, i don't even know if a flip will happen or not, if after doing all my research and the #s don't add up, we will not flip a house at all, i will just buy more houses and rent them out for now. After all, it is much better to make $0 than loose money.
However, when my wife and i saw a flip house this afternoon, base on what we saw, we do believe if we buy the right house, keep the renovation cost down, money can be made.
That was a flip that stood out. I feel sorry for whoever bought that house.
First of all, thank you for writing such a long reply.
1. After we saw the open house this afternoon, i actually asked my BIL about tools. He told me he has the tools to do the work.
Before we actually flip a house, we will make a list of projects that we think need to be done, make sure we know how to do them, and in what order, what tools we will need. Are the tools that he has good enough for the job. If you cannot make it work on paper, there is no way you can make it work in reality.
2. i agree, thats why he gets paid. The question is how can i have his connections. When I get a chance, i will chat with the tenant thats renting my house and ask him about how he was able to find our house.
3. my coworker told me another guy at the place that i work is a part time flipper, i am planning to ask him about where to find materials and some other questions that i have about flipping next week.
I also discussed about the material cost with my BIL, we will set a # for each material, say hardwood needs to be under $x per sq ft. I will search around, if we cannot find material in good quality under the price that we wanted, we will not flip a house.
Last but not least, thanks again for writing such a long reply on Saturday night, i am sure it took you quiet bit of time to write and i will definitely take what you said into heart.
You expressed concerns that if you paid cash, you would only be in low end or ghetto areas.
A good friend of mine, who is now a retired realtor, literally made his fortune (several million) buying "beater" houses in bad areas, doing the cosmetic splash and dash, then selling them for 30-40% more than his costs, taking back a vendor 2nd mortgage as the down payment. 1st mortgage covered his upfront cash outlays including renos, the 2nd mortgage provides him with a very nice cash-flow.
There is often a better return in low end or ghetto areas.
Fastest way to lose a million dollars is to open a restaurant.
Every time you write something I keep wondering if you are for real.
I am a successful agent and my best client flips houses in the million dollar range and has done so for years. He's probably flipped 50 houses in the past 30 years. Do the math.
Do you have a bachelors degree? It is a requirement for a real estate license in Texas.
What are the requirements for a contractors license in your city? Does your brother in law comply? What happens if you find a good deal in July and he's in Canada? Do you understand the maximum stay restrictions in the US for Canadian citizens?
I went to the real estate commission Web site for Texas and it doesn't say anything about a bachelors degree.
You expressed concerns that if you paid cash, you would only be in low end or ghetto areas.
A good friend of mine, who is now a retired realtor, literally made his fortune (several million) buying "beater" houses in bad areas, doing the cosmetic splash and dash, then selling them for 30-40% more than his costs, taking back a vendor 2nd mortgage as the down payment. 1st mortgage covered his upfront cash outlays including renos, the 2nd mortgage provides him with a very nice cash-flow.
There is often a better return in low end or ghetto areas.
I talked to my wife yesterday about this, the reason that we have been only focusing on our area is that we feel like we are fairly familiar with the area that we live, we bought a house here, my wife used to live in a rental here many years ago, we know this is a fairly decent place to live. Even if we cannot sell the house after we flip, we will have a back up plan, which is renting it out. I am not sure if renting a flipped house at a reasonable price in a low end or ghetto area is possible or not, since i never lived in those areas before.
Once i get my hands on the local MLS, see how much flippers paid for the house, how long it took them to sell the house, at what price, how much they spent on renovation , if we believe we can actually make money by flipping house in those area, we will strongly consider.
When we first started thinking about flipping house, we actually planned to buy a cheap house in a low end area, pay cash for it and flip it, just to use it as a learning experience, before we move up to some of the nicer neighborhoods, but i read somewhere on this forum, someone said that don't flip a house in area that you don't want to live, i believe in that statement to some degree.
Last edited by some1livesinamerica; 01-21-2018 at 08:52 AM..
I talked to my wife yesterday about this, the reason that we have been only focusing on our area is that we feel like we are fairly familiar with the area that we live, we bought a house here, my wife used to live in a rental here many years ago, we know this is a fairly decent place to live. Even if we cannot sell the house after we flip, we will have a back up plan, which is renting it out. I am not sure if renting a flipped house at a reasonable price in a low end or ghetto area is possible or not, since i never lived in those areas before.
Once i get my hands on the local MLS, see how much flippers paid for the house, how much the flip house end up selling for, and how much they spent on renovation, if we believe we can actually make money by flipping house in those area, we will strongly consider.
When we first started thinking about flipping house, we actually planned to buy a cheap house in a low end area, pay cash for it and flip it, just to use it as a learning experience, before we move up to some of the nicer neighborhoods, but i read somewhere on this forum, someone said that don't flip a house in area that you don't want to live, i believe in that statement to some degree.
How will the MLS tell you how much they paid for renovations?
How will the MLS tell you how much they paid for renovations?
Base on the before and after picture, we will try our best to estimate if we had to do the renovation that the flipper did ourselves, how much do we have to spend. To offset any errors in the estimation, we probably will add another 10% or 15%(the exact % is yet TBD) on top of our estimation and see if there is money that can be made.
Unlike some of the other states, Texas is non-disclosure, makes my job just a little bit more difficult...
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