Whats the best way to get into Flipping Houses?

Question

I want to get into flipping houses. Do I need a real estate lisence? What education should i get? What are the legal requirements?

Answer 1

With your eyes wide open.

Flipping is not the cash cow it once was. I've been house hunting lately and there is a huge difference between a home where someone knew what they were doing and a home where someone thought slapping a can of paint up would be a money maker.

If you want to flip houses, you need to get construction experience, project management experience, and decorating experience. If you're going to have to pay people to do everything, you're looking at very little profit.

There are small, professional firms that do rehabs in this area and most people will only consider homes they've done. Heaven knows what kind of cheap slip-shod work was done by someone who doesn't know what they're doing but wants to make as much money as possible.

Among the gems I've seen:

The house where there was a space for a microwave above the range, but they put in a hood instead. But the cabinets below the hood were not finished. Once we noticed that, we started seeing corner cutting everywhere. Clearly, they ran out of money. And the house has been on the market for over a year!

The house that failed inspection. There was a water issue in the basement and a crack in the brick. The masonary guy I sent over said the house needs to be condemned. But somebody had put about $100,000 into it but missed getting the brick checked. Someone who thought flipping was easy. Someone headed to bankruptcy.

The house with the drive-through. The person didn't have a clue and put these two windows extending out to the street that look like a drive-through. The house is laid out so funny that it will never sell.

The house with the backwards doors. The doors open up all over each other, making the house clumsy.

I could go on. There are many houses being renovated in my neighborhood. The ones where someone knew what they were doing sell quickly for around $400k. The ones that were done by someone who woke up one morning and decided to flip homes sit on the market under $300k.

Answer 2

House flipping is not as easy as it looks on TV. There are many many things that you will need to know. Also you have to have the bank roll to do it. Even if you get a loan for the house, you still need the fix up money to complete the project.
I would suggest you hook up with a Realtor who knows this market well. A lot of Realtors will show you homes that are listed cheap, but not really good flips. You buy it because the broker says to, and next thing you know your loosing money. Make sure you find a qualified agent.
Good luck,
RE Agent,
Remax

Answer 3

This is a bad time for real estate flipping it is a good time to buy. but only if you have the money to invest. I have ten houses that I have been forced to rent out because of the economy. Just be smart if you decide to go ahead and have each house inspected before you buy also make sure you have a budget set up and don't break it. also Make sure your Contractors are reliable research and research some more always think ahead. GOOD LUCK

Answer 4

Come to suburban detroit...buy my 1800sf quad for 230k.