flipping houses?

Question

Ok, everybody is talking about flipping houses. What is the catch here? what's pitfall in flipping houses business? Finally how realitic is this?

Answer 1

You have to be able to buy houses at significantly under market value for when you sell it. You can do this by the following:
1) A distressed house that you can get cheaply and fix up.
2) A house at or below market value when you buy it...but due to hot conditions is worth significantly more by the time you sell it.
3) Just generally buying way below market value (from forclosure, preforclosure, auction, divorce, death, etc)

The problem is if you misguess what it would take to fix it or the market has cooled siginificantly that the prices have dropped.
Carrying cost between buying and selling go up with how long you have to hold the house...you could misjudge the time it takes to sell.
Its expensive if you cannot do most of the repairs yourself.

Answer 2

Hear is what happen and how to flip a house. First off you get the inside scoop usually with a back payoff to some Realtor who does not place the house on the MLS. There by shorting the market and not representing the seller. Then you do a fast cheap fix Then you sell the house but it gets marketed by the Realtor.

Yep to make money you need the inside track, ho yea this kinda of stuff did short the market and drive up prices so much it caused a housing bubble.

http://www.breakingbubble.com/index.htm

see how els they made the bubble

Answer 3

Pokerden gave great advice. However, you can flip contracts for money and there is no risk involved. Worst case scenario, you lost out on a dollar and your time. Basically you find an undervalued property and take ownership rights to the property using an assignable purchase option contract. Then you turn around and sell the contract to a rehabber or whoever wants to buy it.

It's real and you can make money, but it is work. I personaly like it because you help other people and get paid for it.

Regards

Answer 4

If you own a home now, do you do all the repairs yourself? Do you consider yourself a handyman/woman? If not, then learn before buying your house to flip.

For your first, I recommend you buy a house that you feel you can fix up yourself to the point that it's worth more money. Do this while you live in it, so you're also getting that use out of it. If you live there for 2 years prior to selling, you'll save a bunch on taxes. HUD foreclosures work well for this.

If you're in Texas, I could help you.

Answer 5

I'll tell you one golden rule.

Make money when you buy it. This means, you have to find a house selling for 80 or 90 cents on the dollar.

The days of 15% annual returns are gone. Gotta make money on the close.

Answer 6

i know the industry is slow, that's glaring! despite the fact that if, via fact the industry grew to become into so warm and loan companies have been financing all people now's a competent time to purchase via fact there are a number of foreclosure going on. between the least puzzling suggestion on a thank you to get updates on foreclosure touch some loan companies on your section and get set up on their weekly foreclosure lists. So in case you at the instant are not in a hurry to sell and stay on your "turn" like the WIZARD reported you additionally could make some great earnings. to boot, the thank you to do it your self and save money on hard artwork. stable success and characteristic relaxing.

Answer 7

True and the cost of the house plus the labor cost put back into it.
Then what are you going to do while its empty and your paying on it.

Answer 8

the risk involved is that everything depends on the housing market.