Flipping Houses?

Question

I recently have become interested in flipping houses (like on TLC and A&E). Does anyone know the procedures for flipping, or where I can find info on it.

Answer 1

"Flipping" is generally discouraged for the general investor...you get taxed a high rate on captial gains that you would have to get some very good appreciation to break even. "Flipping" generally works best for real estate agents.
For the rest of us, a buy and hold for one year is what we can expect, preferably on a pre-construction home for maximum appreciation potential, but be prepared to tie up a deposit for a year.
If you can't consider a new construction, older homes are not a bad choice for a quick turnaround...via fixer uppers. Some people make their living buying a dumpy home in a good neighborhood, acting as the project manager to fix it up, resell, then move onto the next project. If you enjoy this lifestyle, you can probably make a good living after 4 resales.

http://www.amazon.com/Make-Money-Fixer-Uppers-Renovations-Eldred/dp/047143342X/ref=pd_bbs_sr_2/102-9916951-7892154?ie=UTF8&s=books&qid=1183491150&sr=1-2

Answer 2

The internet is abundant with puzzle pieces about flipping houses: Here are few words that form the puzzle in real estate scenario:

ARV
Staging
Hard Money
Contractors

The above words listed in bullets are pieces to the house flipping puzzle, and those pieces are highly important. However, if one is new to flipping of houses, then these small pieces of information can appear like some jigsaw puzzle that amounts to 1000 pieces which have to be assembled together.

An expert in flipping houses would not want anybody to look at flipping houses with the same hatred as looking at puzzles.

Stay committed to the flip:

The initial step in any real estate venture is to stay committed. Abundant number of people would like to get into flipping of the houses. Or they may desire being landlords, and get really excited about the very idea of becoming a landlord. Flipping of houses is not just a hobby; it is a business that can influence your future in the economic scenario. Be decisive that you are going to do the flipping. Also, decide on learning everything inside out. Only then, one should move on to the step two.

Have a sound knowledge on flipping houses:

Education is pursuit for the lifetime. Before one takes up flipping of houses, one should be well-educated regarding the concept. Of course, it is not recommended to go to some class for an exorbitant amount of money. The only suggestion is that one educates himself well and be keen to learn the basics of the trade. Start teaching everybody with what you know, because that is the best way to digesting what you have learnt. Do not just skim through the surface – try to go in and make out how it works.

Have a sound knowledge on the flipping mathematics

When proper calculation is not done to a flip, you will not possibly get the exact amount of money coming out of it. In a successful flip, understanding the appropriate math is the most important feature.

Research of the market:

Most importantly, you will need to observe the market and decide on the appropriate place to flip. In some vicinity, $200,000 for a home would be deadly cheap, whereas in yet other areas the $200,000 would be a very exorbitant amount. Each and every market is different, so one requires sound knowledge on the market that one flips into. Raise these below mentioned questions to yourself:

How much does an average house go for?
How much does a bank REO go for?
How speedily are the properties being sold?
What are the places which sell speedily?
What types of property, size, and layouts are selling speedily?

Do a thorough study of making out and honing in on the local market. Just have a walk through the open houses, and have a meeting with local experts to make out the state of local finances.

Arrange for the Flip Financing:

At this juncture, one might be excited enough to begin. But before that, you need to raise a basic question to yourself:

In what mode you are going to pay for the flip?

There are many different strategies you can exploit to put finances into the next flip. Here are a few of the viable methods:

Everything as cash

If one has the cash in the bank, one can simply write the check. This might be the easiest way, but for majority of the people, it is not the best option.

Partners/Private Money

If there are people who can lend money, they may be drawn to partnering or lending money at a certain rate of interest. Money that is private can be affordable, although getting to have private money can be arduous and legally difficult.

Answer 3

The boat has already left the dock on flipping successfully. Given the weakness currently existing in real estate markets across the nation, you may well find yourself buying what you think is a deal, fixing it up for resale, and then discovering that its value has now fallen to below what you have invested.

Right now, flipping is a game which should only be played by those heavily experienced in the real estate values market.

Answer 4

I would really love to get into it as well... I image you would have to have enough money to buy the house first and then enough money to make repairs. Most of the people on the show either do most of the work themselves or have friends who do labor cheaply. I think it would be best if you worked together with someone who has done it before or someone who has experience working on houses

Answer 5

i understand the marketplace is sluggish, it is obtrusive! even nonetheless, because of the fact the marketplace became into so warm and loan businesses have been financing each and every physique now's a sturdy time to purchase because of the fact there are various foreclosure occurring. between the least complicated the thank you to get updates on foreclosure touch some loan businesses on your section and get set up on their weekly foreclosure lists. So in case you're no longer in a hurry to sell and stay on your "turn" like the WIZARD reported you may make some large earnings. as nicely, study the thank you to do it your self and save funds on hard artwork. sturdy success and have relaxing.

Answer 6

It's really a pretty risky investment. Cost overruns are common, it's still a slow market to sell, and there's a real chance you could lose money on it.

But there's gotta be tons of books at any library or bookstore on it. Go read a ton of them.

Answer 7

If you have to come to yahoo answers to find out how to flip a house, you are probably not ready for it. Would hate to see you get burned and lose everything.