flipping houses?

Question

just outta college, makin 31k...I wanna start flipping houses on the side...any suggestions? courses to take, ideas, anything..cheers

Answer 1

First, unless you've got cash on hand, you have to find a mortgage to buy the house. Most loans need you to qualify for the amount, but also the house has to be in a pretty good condition. Lenders won't loan money if its a piece of crap house. Why would they? They'll send an appraiser out.

Second, do you know anything about repair work on houses? Most houses need work, and if you're going to flip a house these are usually piece of crap that need a ton of "fixing." Do you have cash to make these repairs?

Third, making repairs on a house is not easy. There are a ton of things that might come up that you didn't know, or that the inspector didn't see. Dry-rot is just one nightmare.

Fourth, do you have the cash set aside to pay the monthly mortgage? What if you can't fix it fast enough, and/or what if you can't sell it in your time frame? Do you have the money on $31,000 to pay your bills, debts AND the mortgage?

Fifth, do you know about tax consequences and liabilities on doing something like that? Do you know that taxes can be 30% or more if you don't channel the proceeds to a legtimate 1031 tax exchange.

I wish I had a dollar for everyone that dreams about doing this. The only ones that are making money doing this are the ones HAWKING the books and tapes. If it were that easy . . . . HA HA HA

And the fact that you want to do this "on the side" . . . dream on.

Answer 2

You can try tax property sales, but usually you have to buy the group in order to get the houses, this isn't flipping, but its a safer way to start. Go online to your county's home page and surrounding area and look up Tax properties. Then they tell you the date that the next sale will be and get the local newspaper, usually they tell you the dates the will have the list, or you can call to ask. You have to have that money, and usually by the end of the 2 years, most or all have paid you back with interest. If your unlucky and you don't get all your properties back to their original owner, you have to foreclose the prop and sell within a certain amount of time.

Answer 3

There are plenty of seminars out there. Be careful and take the info you get with a grain of salt. A lot of those guys pay thousands of dollars a day to learn how to give seminars, and you will start to see the patterns in them as you go. The packages usually cost $800-2500 dollars for books and cds, and can cost tens of thousands for "escapes", "boot camps" and such. Now, that is not to say you won't learn good info, but you got to be careful that you don't get sucked into everything and buy a bunch of stuff that just sits on your shelves. I recommend you walk in their with a set budget of how much you plan to spend, and then stick to it - a lot of them will not mind at all if they bleed you dry.
Some people that host good seminars are:
Ted Thomas, Robert Kiyosaki, and you will start to recognize the names of the smaller players associated with them. Good luck, and tell me how you do. Remember, you don't need money, there is investment money out there - but you do have to have a product worth investing in. Give me a holler in the future if you would like, I will be quiting my day job soon to do this full time. I have already gotten a hold of my first property, and it just went into escrow - at 220% of what we bought it for.
Don't listen to naysayers - most people's thought processes about Real Estate is very narrow and black and white. The one thing I have learned about Real Estate is - there's a hundred ways to skin a cat.

Answer 4

i be conscious of the industry is sluggish, it somewhat is obtrusive! besides the undeniable fact that, as a results of fact the industry replaced into so warm and private loan businesses have been financing all and sundry now could be a competent time to purchase as a results of fact there are a number of foreclosure happening. between the least confusing counsel on the thank you to get updates on foreclosure touch some own loan businesses on your area and get set up on their weekly foreclosure lists. So while you're no longer in a hurry to sell and stay on your "turn" like the WIZARD stated you're able to make some great earnings. as properly, study the thank you to do it your self and shop money on hard paintings. good luck and function exciting.

Answer 5

Mistakes that new house flippers do and what they should know :
What is flipping?

When you involve in flipping house real estate property you purchase it for a low price and then eventually resell the property for a higher price. This is done within a short tenure. While in some instances you enhance the house you may also leave the property as it is in other instances. In the second case another investor gets interest in the property.

Property flipping is a famous practice in the world of real estate. Flipping should be carried out in an ethical and legal manner and all the representations of the house condition should be correct. The value of the property should also be accurate.
Now let’s go over certain aspects of flipping:

At the initial stages of flipping several flippers doesn’t have sufficient knowledge about the cost it takes to renovate a house. So they budget an amount that may not be correct. The problem is estimating repair costs in the most correct manner.

Repair costs may spring suddenly when you have started to renovate the house and you have to contemplate upon the hidden repairs in the initial stage itself.

You would have spent lot of time in flipping and would have expended a huge sum. So it is natural that you desire to sell of your property in a swift manner.

You may think that through flipping is a get-rick-fast method. But you have cognizant of the fact that similar to other type of long-term investment it requires perseverance.

Sometimes several house flippers will associate with another investor while in the process of flipping houses. It may be that while one investor deals with the cash transactions including paying the sum, another one will scout for the deals. In fact, the second person will be carrying out maximum work. Partnering can be a viable option if there is clarity of job and written agreement is available. Why do real estate investors endeavor in partnering? This they do so to share the risk. Having said that, it is not wise to enter into partnership on a real estate deal. When the partners have well-defined roles then this can be considered.

Answer 6

Just do it...If you buy a tax lien property you might get it pretty cheap, you just need to go to your city hall to check on delinquient property. You will find most of these properties are torn up and have liens greater than what they are worth, but if you find something good, grab it.

Answer 7

Richard Kiyosaki has some great books on the subject. Also you can talk to a mortagage broker.