I want to take out a first time buyers home loan and go purchase house with tthe loan and sell the house for $2,0000 maybe 3,0000 above market value and pay off the loan instantly and make revenue is it safe what are some risks in doing this?
2007-03-19 02:10:18 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Your primary risk is not being able to find a buyer who's willing to pay $200,000 to $300,000 more than what you paid for it. My sister-in-law engages in this "flipping" and has made a good livelihood at it. Of course, I've seen the numbers, and her exposure at any time is greater than her cumulative income on the entire venture. Just keep in mind that if it were truly as easy as it sounds, everybody would be doing it.
2007-03-19 02:22:09 · answer #1 · answered by trentrockport 5 · 1⤊ 0⤋
Well the risk of it would be your credit score! Buying a home will automatically bring you score down and selling the home quickly will bring it down again (me and my husband found this out he hard way). I know you would think selling a home and paying it off in full would help your credit, but it only hurts it.
2007-03-19 09:30:16 · answer #2 · answered by Billie A 3 · 0⤊ 1⤋
hahahahahahaha
you are asking for big problems
ask yourself these questions
what happens if you can't sell the house/how long can you pay the mortgage
what happens if you don't get the price you want
what happens if you loose your current job and can't pay ins.,mortgage payments and taxes
don't forget when you own it you have to pay ins and taxes on top of the mortgage
2007-03-19 09:19:42 · answer #3 · answered by elite_women_rule_the_rock 6 · 2⤊ 0⤋