I'm planning to invest/save for medical school. Im a college sophomore and I need some serious answers. Is the house buying process strenuous or pretty easy? I need answers.
2006-12-04 08:32:07 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Flipping houses is kind of like gambling NEVER FLIP more than you can afford to loose!..We flipped a house and lost $11,000 on the deal..There is ALWAYS more repairs to be made than you can see..So be careful..Flipping can be very, very profitable but like gambling it can also be very, very costly!..
2006-12-04 08:45:38 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Right now, the housing market is slowing down. Which means two things: takes a while to sell, and there may be more bargains available.
However, to make any real money, you can't just buy a home, slap some paint on it, and sell it for a big profit.
It costs a couple grand to finance the purchase. Every home will be different as to how much it would take to renovate. Then it takes thousands of dollars to sell, assuming you have to pay a realtor to sell it. You will have to make mortgage payments while you own the property too.
Gutting and rehabbing a home could easily take hundreds of man-hours of work. Got any friends you can hire real cheap? $8/hr. cheap?
Just answer this question honestly: Can you walk into any home, spend 2 hours in it, and walk out with a comprehensive list of items you will need to fix? I mean down to the nuts and bolts. You need to be able to estimate all the time and materials you will need, so you'll have to have enough knowledge to know that "I'll need enough sheetrock to cover X amount"... Plus the 2x4's etc.................
If you can't answer yes, it probably means you shouldn't be doing it. This isn't a part-time venture, since every day you hold the property costs $30-50 in interest costs alone. Not to mention, you could end up selling at a loss.
If you really are serious about it, shop for a realtor who specializes in identifying distressed properties, one who can show you a list of homes they have sold that were later fixed and sold for profit. Line up a ton of friends who will work for you super-cheap. Get your financing lined up.
Very risky business in this market.
2006-12-04 08:47:29 · answer #2 · answered by Anonymous · 1⤊ 0⤋
It is risky, and if you do not have the cash to do it, you are making a big gamble with someone else's money. Great if you are in the right market, or a huge disaster if you make an error.
If you do not know if buying a house is strenuous or easy, you do not know enough to do it as an investment strategy.
2006-12-04 09:30:12 · answer #3 · answered by kingstubborn 6 · 0⤊ 0⤋
Absolutely!
Flipping houses is a great profession to be in. I currently flip houses for a living, and have had a blast making hundred's of thousands of dollars. The key is to do as much work as you can on your own.
Did you know that you can make $40,000 + on a house, and never even own it?
Take a look at my website - I just put it online last month -
Please realize that Flipping Houses is not a "Get Rich Quick" Scam!
Do as much research as possible before starting on your first flip -
http://www.learntofliphouses.com
Kind Regards and Good Luck!
Adam Monforton
2006-12-04 10:28:05 · answer #4 · answered by p3mofo 2 · 0⤊ 0⤋
Repeat after me....
"If it is that easy and profitable... everybodywill be doing it...."
Despite what some get-rich-quick scheme book sellers make you believe, and what some television show tries to show you, it is NOT that easy. You can easily get into multi-hundred-thousand dollar debt and lose just as much by choosing a wrong house in a wrong place.
House buying process is streneous. After all, you are making the biggest investment that you will ever make in your lifetime.
2006-12-04 08:42:29 · answer #5 · answered by tkquestion 7 · 1⤊ 0⤋
if you know what you're doing, and what you're getting into - it can be easy. but if you have no idea what it takes to sell a house (i'm talking fine details) or how to properly inspect every last nook and cranny into a house, you might not make as much...or any..money as you think. Flipping houses is a great way to make a ton of cash, but it's a HUGE risk and huge investment. If you're up for a big challenge that'll take alot of careful planning - go for it, it can be fun.
2006-12-04 08:36:36 · answer #6 · answered by silllyfox 1 · 0⤊ 0⤋