Real Estate investing.Flipping a house.OK , here's the deal.?

Question

I'm a self employed handiman makeing aprox 20,000.00 a year. I want to flip a house or two in one to six months,make 30 to 50,000.00 & take the rest of the year off to go fishing. Is this just a pipe dream or do you think it can be done.I don't think it would be to much of a problem.

Answer 1

You will need to find a vacant home that the owner wants to get rid of. Then you have the owner sign an assignable purchase option contract which means that you have the option of purchasing this property within a period of time (such as 3-6 months). You give him a dollar (option fee) to make the contract legal. During this time you make repairs on the property and find a buyer. You then sell your contract to purchase the property to the buyer for an option fee greater than $1. Then you go fishing.

The whole process cost you $1, money for supplies and your time.

Regards

Answer 2

I flip houses, for probably 1/3 of my net income. I have to find properties people don't want, ask for a discount, use creative financing, and in the end, I make between $10,000 and $50,000 after paying back the Home Depot, and other creditors.

I pay a small group of Agents to find the properties for me, and they charge between 1 and 2% of the purchase price, because they know they don't have to market the thing, or hold open houses.

I prefer to buy and hold. I don't mind being a landlord, and I stand to net over 1 million dollars in 30 years, with other people making the payments!

Answer 3

satarnag gives you one of the best ways to make this work out for you because you do not make much money.

do realize that when you sell, some of your profit will be grabbed by uncle sam because you do not reinvest the profit into another investment. you should consult a real estate attorney, asking if doing "1031 starker exchanges" are better for you than going fishing after that first flip. have fun!