buying and fixing up houses for higher re-sale.?

Question

whats the best way to get into buying and fixing up houses? what are some good tips and trades you can offer.

Answer 1

First, its called Flipping. I highly reccomend watching "Flip this house" and "Property Ladder" (They're on HGTV or A&E or TLC or something like that.)

Its VERY RISKY.

The number one thing is finding a home in a hot market. Dont buy a fixer if there are 50 other homes within a 1 mile radius for sale. Your house wont sell quickly.

Second, GET A FULL INSPECTION. YOu need to know everything so you can make your budget.

Third, Spend your money where you will get the biggest return, not just on whatever you want or what you think will make the house 'pretty". Moving a whole wall just becuase it makes more sense doesn't mean you'll get that $5,000 back.

Fourth, consider paying contracters intstead of doing it yourself--- it limits the overruns, beucase you negotiate a single price, and it will be done faster, which will cut down on your carrying costs (IE-mortgage payment) and you can get it back sold quickly.

Answer 2

location, location, location, and
research, research, research,

ok that is the simple answer, but in reality, you want to get into a business where most starting real estate investors and "flippers" want to be in, does it work?

Off course it does, why?

Because if and when you buy property with the "right" things wrong, you fix it, you have added value to the property and it will be worth more, not always to make a big profit, but often enough to make it worth your while.

So the obvious question then is, what are the right things, well that is the magic question.
The answer is more complicated, it will depend on what is wrong, and what it is that you and or your network of trades people can add to the properies value so that you can follow a very simple principal.

If you do any fixing of the property, you need to look for a return of $ 3.00 for every $1.00 invested, if this is not possible, do not invest the money, energy or time.

buy this book, " the milionaire Real Estate Investor, by Gary Keller, it will teach you to detemine how you can best run your business of becoming a real estate investor, it will not teach you anything about fixing houses, but with the information you will be able to determine how the find, select them and deal with them

either buy, fix sell
buy fix hold and or
buy add too and either sell or hold

There are entire librabries written about investing in real estate, the best advise I can give is to surround yourself with a likeminded network of allied resources and meet on a regular base with each of them and discuss your plans ideas and progress.

who are in your network

A mortgage broker,
Lawyer
General Contractor,
Building Inspector,
Insurance Expert,
Accountant,
Realtor
who ever else you feel is essential to your success
Investors,
Partners
The family

Be sure the rest of the direct family is in tune with what your plans are,as their support will be essential to your longterm well being and success (in the end it is not about the money, but about the journey and well you lived it)

Good Luck

Answer 3

Amanda H is right. Look for an area that is improving and buy something you can get a good deal on. You MUST consult a real estate agent, even if you find your property in the newspaper. Your realtor will be able to tell you what the property might sell for. Also, use contractors. They have the tools and training you down and it can shorten your flip. E-mail me with any questions.

Answer 4

This only really works if you are capable of doing quality renovating yourself...and have good friends to help you that will work for minimum wage. If you have to ask the question, you haven't considered the risk of losing money. The pros's make this process look easier than it really is.

Answer 5

i had one house in Florida
its on sale and need some tender loving care