I'm ready for a change. I'm a teacher...I need to start making some money, now. I can fix about anything around the house. There is so much out there...I don't know where to begin. I know the market is bad (S. Florida), but does'nt that shake out the posers?? Where do I start?
Thanks.
2007-08-30 14:32:37 · 11 answers · asked by David B 1 in Business & Finance ➔ Renting & Real Estate
in florida i would wait, i dont know about south florida but im in tampa and house are still falling in price. not to mention sales havent started rising yet and you would have to sell under market to get sold. watch the market and assemble information it should bottom somewhwere in 2008 and then you can buy and flip without worrying about a falling market. get a good broker, somone you like doing business with. the loan industry is cganging and you will need somone who understands the changes and adapts with them. hope this helps.
2007-08-30 15:11:08 · answer #1 · answered by explosurenet 2 · 0⤊ 0⤋
The first thing I would do is look at the local community colleges. I took a very informative class to get me started. It is taught by someone who has either done this for investment or has done what is called "flipping". Flipping is when they fix up a house just to turn around and sell. The class is a few different days with a cost of about $50. It is well worth all the information you receive.
Right now is a terrific time to get great bargains. The rule of thumb is always look for a fixer upper in a good area. Give it a year or so and the housing market will be better to sell. And if you choose to rent it, there are alot of writeoffs on your income tax.
2007-08-30 21:41:50 · answer #2 · answered by martinmartinjm 2 · 0⤊ 0⤋
Educate, investigate and research.
You can make some money, but if you don't buy right, you'll lose more than just your shirt. You need to read books to understand the lingo, take a Realtor out to lunch and the same with a real estate attorney, although both may shut you down the first few times.
See, there are hundreds of folks who want to "jump into the game" only the to find out the game can be quite ugly and even financially devastating if things are not done properly.
No one on this site can possibly tell you what you need to know to get started.....it is just too complex to learn in a forum such as this. Start educating yourself by investing in books, CD's, etc. and spend a lot of time on the Internet gathering information. There is a wealth of free information on the net, much of it geared to the area of R/E investing in which you're interested.
2007-08-30 21:51:17 · answer #3 · answered by liveinaustin 3 · 0⤊ 0⤋
I'm sorry David, but I recommend you do not try for a career change right now.
1 - "...I need to start making some money, now." Newbie investors will not be making money "now".
2 - "... bad market... shake out the posers..?" What it shakes out is the inexperienced... that's you right now.
Here is what I do recommend. Find a Realtor you can trust. Buy a house that needs fixing up - TO LIVE IN for at least the next two years. When you sell, there's no capital gains tax and at least you've had a place to live for your bother - in case there isn't a huge profit. Learn slowly. Earn slowly. Don't lose your shirt and all your savings. Don't quit teaching.
2007-08-30 22:06:31 · answer #4 · answered by teran_realtor 7 · 1⤊ 0⤋
It's one thing to say you can fix anything around the house, it's quite another to be able to buy a geniune fixer-upper and turn it at a profit.
You need a VERY thorough inspection to make sure you don't buy problems you really aren't ready to handle. Totally new wiring demands a real electrician. Renovating a bathroom you probably need a real plumber.
Walls that need spackling and paint don't qualify as fixer-uppers, that's normal. Odds are against buyers actually liking the paint color anyway.
You need to really be informed on what is wrong with a project, what it's really going to cost to fix it, including the monthly payments until it sells, and what the costs of selling include.
You don't just jump into this and make some money. People that jump into it often get burned.
2007-08-30 21:45:21 · answer #5 · answered by open4one 7 · 1⤊ 0⤋
Flipping homes has become very risky in today's real estate "bubble" in full swing. Construction costs (including remodeling) has soared, home prices have fell again in July all across the nation. Marketing times to sell a home after you've completed the flip can range from 3-6 months or longer in states like Florida, California and Ohio (to name only a few) you will need to be prepared to invest a hefty down payment as an investment property (as at 20%), have very good credit, have very strong post closing reserves (at least 6 months PITI in the bank after your closing) and be able to carry the mortgage payments for at least the estimated marketing time mentioned above.
Texas is perhaps the best state now to begin in with your research. The properties seem to be turning around quicker and depreciation rate is better. You sure don't want your property to be worth less and less while your flipping.
Be very careful.
I put a website below for both Fannie Mae and HUD so you can some information on those foreclosures available for fixing up.
Hope it helps
2007-08-30 21:48:40 · answer #6 · answered by Etta P 4 · 1⤊ 0⤋
First thing David - Dont listen to or use a Realtor for finding or buying investment property. Remember, they deal in RETAIL, you want wholesale/discount prices to buy in this market. 99% of Realtors dont know Chit about getting real estate under market value. If they did why would they tell you???? When they could make 30% compared to their split of 2.5-3% comm with their broker. Maybe, use an agent to list your flip and only if they're the best. Remember - YOU ARE IN CHARGE.
Find a good source to teach you how to buy real estate at wholesale - pre-foreclosures, REO's (not Auctions yet- too advanced) Research the site well!!!
2007-08-30 23:15:22 · answer #7 · answered by Stefan O 1 · 0⤊ 0⤋
It does dhake out he poser but the market is not done shaking out yet. For now try doing some handyman jobs on the side. There are some people that make a decent living doing that
2007-08-30 21:38:12 · answer #8 · answered by coxdpcl22 2 · 0⤊ 0⤋
Well, this is not a "game". And it is also not a way to make money fast, either. It takes time and effort and knowledge. I would suggest that before you "jump in", that you get yourself educated and know the ins and outs. Join a local investor group in your area, hear the war stories, talk with investors, take classes and learn..... Since you are a Teacher, you can appreciate the value of educating yourself.....
2007-08-30 22:57:23 · answer #9 · answered by Carly Jacks 6 · 0⤊ 0⤋
You can make a lot of money flipping homes... The sure way to do this (EVEN IN THIS MARKET) is educate yourself how to buy properties at discount and sell them at discount...
The best way to start is invest $19 for Alexis McGee's next tele-conference & Webinar... this is NOT going to teach you how in 90 minutes... but, will give you a real good understanding of what is involved and if this type of business is for you. Go to ForeclosureS.com
If it is for you... get her Home Study course ASAP and start making some real money in real estate... she's great!!
http://www.foreclosures.com/www/pages/TeleConf.asp?AffiliateID=25561451832&BID=20
2007-08-30 22:11:12 · answer #10 · answered by realestate_help 1 · 0⤊ 2⤋