My dad and I are thinking about flipping a house. What are the most important areas to focus on (i.e. bathroom, kitchen, etc.) How much should we invest in upgrades/remodeling? For example, if we buy a house for $80K, how much money should/could we put in and still se a return?
I know there are books out there to guide us through starting to flip, but are there any great websites I could visit? I am not interested in "investing" in the house flipping scams....I want real, good info.
Also, where are the best places to get materials? And would an in-town or country house be better to look into?
ANY INFORMATION WILL BE GREATLY APPRECIATED! THE MORE THE BETTER! THANKS!
2007-05-03 09:03:59 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
if you are thinking about flipping there are several things you must do before you consider this as something you want to do.
It is always a good idea to flip when you know what you are doing. In this regards you would normally select an area of your choice that is good for you to work and close to where you reside.
I would suggest that you go to your local book store and purchase a couple of books on foreclosures, distressed properties, and buying, rehabbing and flipping. You might also find several other books that you would like to purchase. You might also find a few listed in your public library.
You might also purchase one of the TV guru's programs. In the program you will find several things of interest. You will find script to use on potential individuals that you would want to purchase their house. A slew of legal forms that you can use as well as a formula that will tell you if the property you are purchasing is gonna give you a profit or not and how to use the formula.
Their package will also tell you things you should look out for in your purchase as well as things to that you should beware of.
You should form yourself a professional team to assist you in your newly found career. This is a partial list that you might start with an attorney, real estate agent, a mortgage broker, a home insurance agent, a notary public, a title rep as well as an escrow closing agent. You might want to add or take away depending on how you feel.
You will also need to develop away to market yourself so you can have an unlimited amount of properties to buy and sell even in a slow market. I will list a couple of ways to accomplish this.
#1 Advertise in the local newspaper that you purchase foreclosures and other distressed properties.
#2 Purchase a foreclosure list from a list broker (Do a mailing campaign like everyone else)(You might also cold call off this list but you must beware of the no-call list)
#3 Select an area in your city to devote full time work in. Walk the area for about 2-3 weeks telling the folks outside their homes what you do pass out flyers out ling that you buy foreclosures and distressed properties as well as probates.
After 3-4 weeks of walking in the neighborhood, contact your title rep and ask for a farm package of the names of the people in your farm area. Now each month mail a newsletter to the names on your farm list.
This method should give you 1-2 housed per month to buy and flip, word of mouth will give you another 1-2.
That will keep you busy with enough to do and earn. You can always expand and you will as you learn more about your trade.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-05-03 10:34:18 · answer #1 · answered by loanmasterone 7 · 1⤊ 0⤋
DON'T DO IT AT ALL!
There are many very good and well intentioned people who have been watching too many of those outdated shows on HGTV! This is a very bad time for beginners.
But if you are still determined...
The first things you should consider are:
1) Are you going to be able to sell the home at all?
2) How long will it take?
3) What price can you expect considering the improvements you will be making?
4) Even the best flippers run into unexpected trouble. You might think it just needs cosmetic work, but then find you have structural or mechanical issues once you start tearing things apart.
Talk to a couple of local REALTORs and see what they can tell you about some of the homes that have sold recently in the same neighborhood and what kind of condition they were in.
2007-05-03 20:25:40 · answer #2 · answered by Hatlady 3 · 0⤊ 0⤋
Buy in-town, because the comps for the appraisal will be easier to come by. Realtors say that the two things that sell the house are the kitchen and the bathrooms. Concentrate on those, upgrade the other rooms, add a deck around back, add new appliances (stainless steel is in), stuff like that. After that, curb appeal is crucial. Hire a landscaper to put down new sod and flowerbeds. Best places to look for matierials would be to check with property management companies local to the area.
2007-05-03 09:59:08 · answer #3 · answered by togashiyokuni2001 6 · 1⤊ 0⤋
put no more than 15k into to make sure you get a real good return. as for stores your best bet is home depot and also try mom and pop stores they have the best deals. to get lumber you can also try lumber liquidation. try to get a house within a 20 mile radius of where you live so that you won't have to travel a lot. cyberhomes.com will help see what home in your neighborhood is on the market and selling the most
2007-05-11 07:29:13 · answer #4 · answered by jsnaughtywife 1 · 0⤊ 0⤋
Flipping is headache, you don't know what going to happen. If you can afford to do it, move on. It's not always easy money...... If it does not sell, are you able to make the mortgage payments? If you don't pay them it will hurt your credit and that may be your last flip............
If you can take as must cash out up front......so you won't have to pay taxes on it, after you sell it.
GOOD LUCK,
The other two post above mines are also good advice.
2007-05-03 09:39:09 · answer #5 · answered by ron d 3 · 1⤊ 0⤋
right now the market is weak. dont buy anything that you cant sit on for 6 months to a year.
baths and kitchens are big sellers and the neigborhood,
I dont care if it is a great house.
if it is in a bad part of time forget it.
Good luck!
2007-05-10 18:44:00 · answer #6 · answered by tennessee 7 · 0⤊ 1⤋
I have flipped 8 homes. I concentrated on the kitchen (Lots of granite and hand crafted cabinetry) and bathrooms (lots of tile ). Flooring is very important too. Wood and tiled floors are much more appealing than vinyl. Your return will depend on your location. We used our Home Depot card and paid it off every time we sold a house.
2007-05-03 09:13:17 · answer #7 · answered by kendi 2 · 2⤊ 1⤋
Make it look nice is a given. Clean the soap trays and put up new shower curtins and paint light off white throughout and clean or replace carpet.
2007-05-10 16:22:41 · answer #8 · answered by RT 6 · 0⤊ 0⤋
Just remember that you make money when you buy, not when you sell. Translation: only buy if it's a really really really good deal. Especially in a declining market like we have now.
2007-05-03 10:59:49 · answer #9 · answered by Cardinal Rule 3 · 0⤊ 0⤋
NEVER try to 'flip' in a weak real estate market. Currently the real estate market in most areas is weak and getting weaker. 'Flipping' now is a great way to lose your financial shorts!
2007-05-03 09:13:27 · answer #10 · answered by Doctor J 7 · 2⤊ 1⤋