I have been a home builder for several years, and I'm interested in flipping! How do I find the best property?

Answer 1

We live in different countries so the details might be a bit different but the principles will be the same. You make your money when you buy not when you sell. Buy at the right price and you can't go wrong. Ignore the remarks about teachers not being able to buy houses or the slump in the economy. You will be taking on a property most other people wouldn't consider and turning into a marketable home and there's nothing wrong with earning money doing that. You can make money in any market rising or falling, provided you pay the right starting price.

How do you find the right starting price? It's as easy and as hard as looking a dozen and dozens of house. Research is the key, the area you want to buy in, the types of properties available and what you can expect to pay for them. Don't get emotional about it, however beautiful you think a house is, however much potential you can see, if the buying price is too high just walk away. Don't be afraid to put in a low offer. The worst thing that can happen is they will say no. They may even be insulted enough to refuse to sell you the house (people are funny like tha) No stress, walk away, there's always other houses.

Do the math, what are you paying for the property, what is it going to cost you to renovate it? Include everything, your wages, your travel, the cost of dressing the property if you are planning to do that, don't guess, if you don't know what something costs find out. What can you sell it for priced for a quick sale, don't forget fees for selling. If a property sticks it is a nightmare. Aim for a pretax profit of 20% and you should do fine.

Finally before you put the money on the table make sure you can do what you want to do. If you are just redecorating it shouldn't be a problem but check with your local planning authority as to what is and isn't allowed, what permissions and licences you might need and if you will be able to get them for that specific property.

You may want to look at www.sbeeny.com she working in the UK so again things details may be different but the principles still apply.

Good luck

Answer 2

Look for values in blighted areas that on the come back.. My brother in law and I've found a couple where the properties are starting to come back to single family from a long history ofbeing split into apartments. We recently found one for about $49K in an area that will carry about $250-300k for that size of house. We have to put about $50-75k into it.

Even with the housing market being somewhat bloated right now, in Hotspots in many communities you can still make a good bit of money if you do your research. It is a buyers market you don't want to sit on tons of debt paying interest taxes and mortgage. But if you find a good flipper there is still good money in it with caveats..
Do your our prospecting, check Realtor.com or MLS listings through a local realtor site. We stumbled into this one because we were doing a customer's kitchen and bath a couple of blocks away.

If you have enough funds set aside to buy one outright and pull a construction loan for 12 months to renovate and try and sell before the end of the term of the note.

Answer 3

With your background, you should have a handle of what it will cost you to flip a property, and the expected time to do it. You should never flip doing the peak work season. This is an off season activity that pays big.

If you use the contacts that you have or come across, just ask if they know of any property that is idle that you could fix up for yourself.

As soon as you mention, "Flipping" the price goes up. At one time I acquired a property and paid taxes on it for (2) years, used it as a storage of my tool, and sold it after I fixed it. Beware don't paint yourself into a corner and have to flip due to money pressure.

Personally I think that paying $150,000 for a property in a $250,000 neighborhood is a poor decision. After $40,000 in repairs I have to compete with other houses to get $250,000. If I paid $100,000 to acquire and $40,000 to fix - I could sell for $210,000 and make more without competing. The control is in the buying.

Answer 4

I don't know the answer to your question. I will, however, share an experience a friend of mine had. He bought a house to flip, fixed it up and when it came time for the new buyers to get a mortgage, he had to prove that the difference in his purchase price and selling price was warranted. He wasn't able to do so to the satisfaction of the mortgage company and ended up selling below his asking price which was comparable to similar houses in the area.
Be sure you know what will fly in your community.
Good luck.

Answer 5

don't do it!! the housing economy is in slump right now due to all of the new "speculators" that have flooded the market with property flips. it won't actually self correct until sometime in 2009. wait it out - anything you invest in to flip right now better be cheap cheap cheap on the purchase price, and in an area that would support the sale price once you add in your remodel expenses and your time.

Answer 6

You gotta drive and seek! FSBO's still best bet, but you gotta beat out the realtors. You might pair up with one you know who is also interested. I never find them in newspapers, anymore.....you gotta get out there and look! Here on the Gulf Coast, we spot derelects and foreclosures...plot the GPS and search the county records for owners...make offer....bam! Some foreclosure sales listed in public records of your newspapers pan out......Good Luck!

Answer 7

research/ and a contractor who specialises, High step 585 750 5551

Answer 8

...and people wonder why schoolteachers cannot afford houses anymore.