single mother wants to invest in real estate?

Question

i want to flip properties this is my dream. i might be a little late but i was told that az is the place to start. what do you think??? im just starting and have alot of homework to do. any response positive or negative would be helpful. thanks

Answer 1

There are so many TV programs that make it look easy; however, unless you have a lot of money, family members who are carpenters, and a lot of time I would not risk it.

Have you considered getting a job with a real estate company or an investment firm that specializes in flipping to start getting experience and fulfilling your dream? That would be a more realistic place to start.

Answer 2

There's an obscure part of the flipping business that you might want to look into. It's finding properties to flip for investors who don't want to have to deal with people. You'd drive around the right neighborhoods, talk to people, find the place that looks crappy but might just need a good cleaning. Then you'd put a contract on it and sell the contract immediately. Get involved in a real estate investment club and get to know what's involved, but this might be the right place for you. Unless of course you know how to rip out a kitchen and replace the appliances and how to do your own rehab, and have $50,000 to invest, in which case flipping might really work for you. Also, if you're going to flip, you want to do it in your neighborhood, not far away. You know your hometown best, don't start somewhere else.

Answer 3

It's not hard to get started, this business is all about the numbers. Find a property with plenty of equity (usually these properties need repair) renovate the property using less money as possible, then sale the property for market value and for a profit. To get started consult a real estate agent, you also might want to consider becoming a real estate agent, by doing this you'll get a percentage on each sale and purchase, as well as further your education in the business.

Answer 4

um NO! The mortgage rates are a tad bit high right now plus you have huge property tax bills and in some cases astronimical insurance rates. Not to mention you decided to start flipping in a white hot market. You are well more than a year late to this flipping party. If you are that serious (and tyou need more than 10k) wait at LEAST SIX MONTHS to see what the market dictates then go for it.

Oh and with your 10k in savings is all you have? FORGET ABOUT IT!

save yourself the headache and get a homebuilder stock or etf (but again wait for a few months before doing so)

Answer 5

Wow. Really, I wouldnt' suggest doing this now. You are late to the game and unless you can peform most of the work yourself or have a large bankroll behind you, it can be hard to make money from these projects.

Something you could consider is buying a fixer-upper to live in. live in it while you upgrade it then rent it out or sell it.

If you are determined to do this I would recommend you work on a couple of projects with someone else so you can really get a feel for what's involved. It's a lot harder than most people think and takes all of your extra time which might be hard with kids.

There are many other things that you could do which would be less risky, involve less effort and would probably pay out better in the long run.

Good luck!

http://www.personalfinance101.org/?utm_source=YH&utm_medium=link

Answer 6

Every area is different.

In So. CA, the market hit it's top in the Summer of '05 and is still going down! Many neighborhoods are already down 15%+! Consider that the average sales price in San Diego is appx. $570,000 and you get an average LOSS in value of $85,500 in just about 18Mos!!

The BIG question is will the dropping real estate markets in CA , Vegas, Boston Wash D.C. Fla, N.J., etc. spread to most of the US?

For a real 'insiders' view on this, I would suggest a real eye opener read at:
http://www.brokerforyou.com/brokerforyou
http://www.brokerforyou.com

Answer 7

See the kind of reply you get approximately the federal government having compelled the banks to provide loans ? Not that the oversight committees headed by way of Senator Dodd and Bernie Franks fell asleep on their jobs, and under no circumstances wondered the forms of loans, no longer that their committees ever regarded on the sub top charges or the kind of loan contracts being written or the oversight of Freddie Mac and Fannie Mae which assured over 50% of the mortgages written .

Answer 8

Never invest money you can't afford to lose.
Do you have an emergency fund of 6 months of living expenses?
Do you have your ROTH IRA fully funded?
Do you have no credit card debt?
Start with these things.
Real estate is risky especially now.

Answer 9

You are about 5 years too late. I would recommend studying REIT investments instead.

Answer 10

know your craft before you do so. don't try to make quick money, but understand what you are doing and what you are gettng in to. spend a day with someone who does this work and see what's involved. best wishes.