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Whenever someone says "you can't lose", it's time to shut up and sit back and enjoy the show! But remember, do NOT become a part of the show.
I used to date a guy who was always looking for some shortcut to wealth. He started with some stupid pyramid scheme with a couple friends, selling natural products like Amway. They had this idea for selling it that they thought was brilliant and would make them millionaires but from the very beginning I thought was ridiculous. So of course I end up being the wet blanket on his dreams “you’re never on my side” crap. Of course it all blew up in the end.
This doesn't sound right to me. Are you implying that the buyer is liable for mortgages taken out by the previous owner? My understanding is that whatever the proceeds of the sale, either the realtor or the primary mortgage have priority for getting funds and mortgages taken out after that are next in line. That's why second mortgages, HELOCs, etc. carry higher interest rates. If there's not enough to pay them off after the first mortgage and the legal and realtor fees are paid, they're SOL. If there's not enough to pay the first mortgage that bank is SOL, too, as many learned during the financial meltdown.
I do, however, share your concern about the OP's friends. I'm sure the cash buyers and veteran flippers will get the houses with the most potential for profit and the first-timers will get the ones with way more unexpected problems that will cost more time and money than they ever imagined to resolve.
No, you've got it wrong.
What they were trying to say is only if you buy the most senior lien position will any junior liens be wiped off title.
If a 2nd mortgage forecloses and you buy at a trustee sale (courthouse steps) the you will also owe the 1st mortgage which is in a senior loan position.
Anyone can flip houses for a modest outlay of money, but it helps if you have relatives or you yourself is very good with fixing things like the plumbing, rebuilding walls, generally anything a paid contractor will do. You want to be able to do most of that yourself, so there is a minimal amount of cash going out. Also, some beautiful old houses are practically being sold at extremely low prices, but that is because they are so in need of help. Check out cheap old houses instagram - some of these houses are so beautiful in detail but really need a lot of work, and they go for unbelievable prices. It would be a shame to bulldoze them and all that beauty is gone forever. They really don't make houses like they use to, just square, minimalist, thin walls, most of them now. Flipping houses are not for the faint of heart though, so tread carefully. I always dreamed of doing it, but I know I would be pulling my hair out soon after though.
Anyone can flip houses for a modest outlay of money, but it helps if you have relatives or you yourself is very good with fixing things like the plumbing, rebuilding walls, generally anything a paid contractor will do. You want to be able to do most of that yourself, so there is a minimal amount of cash going out. Also, some beautiful old houses are practically being sold at extremely low prices, but that is because they are so in need of help. Check out cheap old houses instagram - some of these houses are so beautiful in detail but really need a lot of work, and they go for unbelievable prices. It would be a shame to bulldoze them and all that beauty is gone forever. They really don't make houses like they use to, just square, minimalist, thin walls, most of them now. Flipping houses are not for the faint of heart though, so tread carefully. I always dreamed of doing it, but I know I would be pulling my hair out soon after though.
I prefer the ranch style houses that are built to modern standards, generally around 1960 or so, in my area. That way the suds are 16" on center, and stuff like windows and doors are normal size that you can buy at Home Depot and install in 30 minutes.
Some of those really old houses are tough to work on unless you're good at woodworking. Often the studs in the walls are true rough cut 2x4s, not the typical 1.5x3.5 studs you find at the lumber yards today. You go to screw a cabinet to the wall and nope, the stud isn't where you think it should be, but 3 inches over. Stuff like that can be time consuming.
I prefer the ranch style houses that are built to modern standards, generally around 1960 or so, in my area. That way the suds are 16" on center, and stuff like windows and doors are normal size that you can buy at Home Depot and install in 30 minutes.
Some of those really old houses are tough to work on unless you're good at woodworking. Often the studs in the walls are true rough cut 2x4s, not the typical 1.5x3.5 studs you find at the lumber yards today. You go to screw a cabinet to the wall and nope, the stud isn't where you think it should be, but 3 inches over. Stuff like that can be time consuming.
You are totally correct, that is why I dream of renovating a old house but I know the reality would be too much for me. There is a house I saw on the internet from the late 1800s, I think and they have this wood filigree like design that was so gorgeous and walls with curly cues and all sorts of details, they need a little work some of these designs and I think only specialized crafts people should work on those, if they are still around - it's a lost art mostly. There are advantages to renovating something more modern. Also the plumbing from older houses presents another problem - how to find replacement parts - usually it is more easier to replace the whole plumbing system, which is expensive, but if you know someone or you yourself know your way around a ancient plumbing system would help a lot I don't want to even think about the electrical system.
Not sure they went to seminars. She said he has been researching and reading for a year on how to do it. I guess that depends where he is reading. She has been very distant lately. But then I get a text that says her husband super interested in chatting about house flipping or investing and to come over and we can order dinner. I said we can’t flip or invest and then she said “well we can get together soon”. So I suppose they are trying to sell others on it.
Hmm, if the 'we can order dinner' includes them paying for said dinner, then it would have been a free dinner for you had you waited to tell them that you're not investing or flipping at the moment. You may as well be one of the ones feeding off their hopeful dreams, I'm sure there's gonna be loads of others.
Yeah, house construction and materials have changed over the years. We just ripped up a bath floor (it had rot issues) and the joists are 18" o.c. Have to mark the walls where the joists are so we can find them after the new floor is down and put in an extra joist for where the floor plates meet. Might put in joists @ 9" o.c. since we're not using the same 1" thick T&G flooring that had been there.
It's been awhile since we've done a major fixer and I'm finding the 'contractor grade' materials at the hardware stores and lumber yards are significantly worse than they were even just a decade ago.
We may do a new construction in the next year or two, that one may source a lot of locally harvested and milled lumber just so we will get something with structural integrity. I want things to stay done once they're done since we usually keep the houses as rentals after they're fixed up. Which may not fit in with a typical flipper's scheme of max profits.
I prefer the ranch style houses that are built to modern standards, generally around 1960 or so, in my area. That way the suds are 16" on center, and stuff like windows and doors are normal size that you can buy at Home Depot and install in 30 minutes.
Some of those really old houses are tough to work on unless you're good at woodworking. Often the studs in the walls are true rough cut 2x4s, not the typical 1.5x3.5 studs you find at the lumber yards today. You go to screw a cabinet to the wall and nope, the stud isn't where you think it should be, but 3 inches over. Stuff like that can be time consuming.
You are right about the older homes having to buy rough cut from the
local mill if there is one around or by 2x 6 and then fur the lumber out out .Any home built before 1967 also has no insulation in them. ( Dow-Chem invented insulation 66 or 67 I think. )There are some with old rockwool but no where near R15 or R- 30 . I done a complete renovation on one built in 1950. Found a stud behind the wall that said finished February 1950 along with a True Detective magazine dated the same month and year.
The studs in that home were rough cut at 1 7\8 x 3 7\8 16 OC. People really need skills for a home like I bought. I'm a licenced in electrical and Havc and it was still expensive. You will need a truck load of tools and a shop to make and cut doors and cabinets for older homes. done my own cabinet work, crown molding and doors in natural maple. I pulled the wood floors and installed new hickory floors. Plumbing was done by a contractor friend of mine, The entire home was torn down to the original framing; Which was just amazing build quality then and now. Floor joists are real 2x12. In the end 82,000 for the entire renovation. Anyone else it would cost them about 170K or more. Helps to be licenced in the trades keeps your costs way down.
Then there is permits , building inspectors etc. You really need a good credit line with a bank that will work with you. My wife watches these shows and says " these shows make it look easy and never tell anyone the things involved. " which is so true , I seen many fail and few succeed in this business they get way over their heads. I'm retired military but my first job was building homes. Well that house appraised in the mid six figures when done. Got to admit the wife and I are thinking of keeping this one. Just can't beat the quality and views this home has.
Friend of mine got a realtor licence told me now he's going to flip house's. he also works with computers. Told him you got the wrong license see a trade school, it will be the best dollar you ever spend.
So what is with the 3K loans several at a time? Sounds like something from seminar. By the way these seminars are no where even close knowing what needs to be done except selling seminars. No bank I ever done business with has ever mentioned something so strange, FHA either. To good to be true, probably is.
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. "Original poster" = "other people". How fitting that OP represents both.
I don't want to even think about the electrical system.
