Okay I am wanting to get into real estate and buy and sell properties. Any advise on how to do this with little money and little assets.
2007-01-02 12:42:02 · 8 answers · asked by stacy g 2 in Business & Finance ➔ Renting & Real Estate
My family has been doing this forever. That's how my dad made all his money. And I have done three of them for a very tidy profit myself.
Here is the formula...
1) Find a property you can buy for no money down. There are lots of them right now since it is a buyer's market. Making realtors, sellers, and banks a lot more willing to negotiate.
2) The property should be in a decent neighborhood and in need of a cosmetic makeover ONLY!! IE: If it needs new plumbing and a new roof, pass it by unless you can do the work yourself. You want the property that has blotto curb appeal, needs new carpeting and could be a real charmer with some fresh paint. Trust me, there are lots of them out there. You just have to look.
3) DO AS MUCH OF THE WORK YOURSELF AS YOU CAN! If you hire it all out, there go your profits.
4) FIX UP THE HOUSE ASAP!! Do not give yourself a year to do it. You make it your number one priority as soon as you have the property in hand. The longer you hold onto it, the more you are going to lose. You want to turn that house around in 60 days or less if you can. Taxes also come into play here, so the quicker you can flip it, the better.
5) Sell it for a reasonable fair market price. You either need to do a good market analysis yourself, or find a good realtor who can. And FYI - I would sell it myself cause it will keep 5-6% of the profits in your pocket.
That's it. Truly not brain surgery. About 90% of the battle is finding the right house in the right neighborhood. My last bit of advice to you...do not expect a killing on the first one. You want to make enough for it to gain you a positive $$ flow, but you don't have to double your money for this to be a good deal. You just buy better properties as you go. That's how you build a strong foundation for any business. And flipping houses is definitely a business.
Good luck and hope this helps!!
2007-01-02 13:12:37 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Get a real estate agent and lender that will work with you. The lender will qualify you for a loan. The better credit you have, and the more you put down, the more house you can buy, and the cheaper it will be.Your agent has to be willing to find deals on homes for you. Once you find someone willing to sell their home for around 70% of the value similar homes are selling for, you make the purchase. You can make any quick, cheap upgrades or repairs that raise the value. Then you can then sell the home at close to full value. after costs of the loan and sale you will make somewhere around 10-15 % of the homes value. The biggest trick here is getting a good agent. They will find the best deals, and get the home sold for the maximum profit. Also make sure you have enough money to make payments on the house untill it sells.
2007-01-02 12:59:57 · answer #2 · answered by Ron B 3 · 0⤊ 1⤋
There aren't any no money down deals. The idea sells a lot of books and tapes but they are rare because so many are looking for them. Save up for a down payment while you are studying the market. A fair deal will come along if you are smart enough to recognize it. If you have money down it will decrease the payments and you will have a better chance of making the payments if it isn't rented.
2007-01-04 11:50:24 · answer #3 · answered by sm4125 3 · 0⤊ 0⤋
buying a house is easy with little income, BUT, get ready to spend money if you want to sell the house. You will need money to float the mortgage, advertise the property, etc, etc, etc. If want to make money on the house then you need to fix it up, even more money.
2007-01-02 12:47:45 · answer #4 · answered by flyingrizzly 3 · 0⤊ 0⤋
Im not sure of the best way, But I will tell you one thing, never get yourself into Nouveau Riche University, its the # 1 Scam in realestate. $20,000.00 for this college! I almost got sucked into it! But good luck with your career!
2007-01-02 12:52:55 · answer #5 · answered by ashleycasperblue 2 · 1⤊ 0⤋
Buy the book " Automatic Millionaire Homeowner". I just finished reading it and it is amazing! It details how to do just that and if it is a good idea.
2007-01-02 12:46:59 · answer #6 · answered by judirose2001 5 · 0⤊ 0⤋
lowest unique bid property auctions, where prices start at £0.01.
2007-01-03 03:51:40 · answer #7 · answered by humee 1 · 0⤊ 1⤋