I often watch tv programs about flipping houses.. Flip this house and property ladder on TLC are among my favortites.. Are these programes exagerated or do people actually make that kind of money?? And also where can you find a list of foreclosed homes in ontario??
2007-01-28 12:20:56 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
yes flipping houses is done, But the normal return after all expenses is usually not as great as the TV shows. We have flip a couple of houses and have made 9,000 and 16,000 in around two months.
2007-01-28 12:53:25 · answer #1 · answered by swift 1 · 0⤊ 0⤋
Of course what you also see and often don't see are the people who lose money on the flips also.
But if you know what you are doing, you will normally make some money,
Foreclosed homes are normally advertised in the legal section of your newspapers,
But remember to buy them at the auction normally you have to have the cash to pay at the day of the sale.
So normally you are going to drive around and find a wreck that you will hunt up the buyer and buy it from them.
And as stated, what they normally show you is the sale price compared to the purchase price.
They don't show the interest on the borrowed money if you borrow money, or the loss of interest if you take money out of your bank account to invest.
also they don't show the property taxes you pay for the months you own it, the utility bills, or the real estate sales commission and the value of your time doing it.
2007-01-28 13:16:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
When we look at these houses on TV shows remember that these people on the shows are well established and have a ton of money to work with. I mean who really can just snatch up a $140,000 home and put $40,000 into it in two weeks? I am not saying it is impossible to do, as my husband and I are thinking out doing the same thing, but you have to start smaller, you have to be able to get financing unless you have a thousands to hundreds of thousands on the side to put towards a house you want to flip.
2007-01-28 12:56:29 · answer #3 · answered by ♥ Mary ♥ 4 · 0⤊ 0⤋
Most flipping was done before the prices got so high. I know several flippers in Florida who are stuck with 4 or 5 homes they bought to fix up and now can't recover thier money. Its possible to make money but it tough. Learn the market first.
2007-01-28 14:36:09 · answer #4 · answered by sm4125 3 · 0⤊ 0⤋
Don't forget they do not show you all the costs involved. they show you purchase price and fix up cost. what about carrying costs? are you buying with your own cash/ if not there are fees involved there. 1500/month adds up quick. also they never show the Realtor fee. usually 6% of the sale price. so, I'm not sure what market your in but when they show the house in Cali that sells for 2 million and they are going to profit 150,000 that's bull. there Realtor commission is around 110-120,000. remember, its all for t.v.
good luck,
from Realtor, fellow flipper
2007-01-28 13:15:53 · answer #5 · answered by frankie b 5 · 1⤊ 0⤋
Lots of people "flip" houses and make VERY modest gains. But that would make for a dull TV show, wouldn't it?
2007-01-28 12:26:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋