I am reallying thinking about flipping houses for a living because it seems really fun and rewarding. I am going to be taking construction courses at my school and most likley majoring in real estate. Is it possible for someone like me at such a young age to start flipping houses? Is it possible for me to get a loan from a bank to maybe start this process? Please give me any help or advice that you can. Thanks.
2007-09-03 08:39:07 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I started at 20.
As it's been said, you'll need great credit or a lot of money up front. I started with $2,000 and great credit, but with a lot of money up front, you can start with less than perfect credit.
Always do your own market analysis. Realtors want your business, and may tilt their observations in a favorable way so you'll buy their property. I would highly recommend working with Realtors though, especially to buy. Mine will call me when anyone in her office gets listings that I might be interested in before they go on the market.
Educate yourself. I hear people our age say all the time how they hate to read, or can't stand to be told what to do, but the best way to learn is to hear it from someone who's done it. I refer to www.reiclub.com constantly. They have a great assortment of articles on the site, written by the people that do this as a career.
I also took a lot of construction classes, and doing your own work is great and saves a ton of money. Keep an eye on your time though! If you're spending 1200 a month to hold a house, its might be worth saving the time and hiring someone. Mortgage companies will put off your first payment for up to 45 days.
If you plan on living in the house you are remodeling, it will be much easier to get it financed. Investment mortgages are higher rate, and lower LTV.
Any more questions can be emailed to me. Good luck!
2007-09-03 10:06:43 · answer #1 · answered by ? 5 · 0⤊ 0⤋
In this market, have a day job no matter what. Planning on sitting on it for 6 months is a good plan too, but plan for a little longer. Some loans can cover the cost to cure if your doing it up front. Like a construction-perm. loan is based on what the house will be like when its done. It will be a slow process. It's not like you get 10 houses going & they all fly off the market and you make tons of money. A lot of the people who are successful at this have been going it a long time and probably won't be totally out if they loose a few bucks on the first projects. They typically have lots of start up money. Another option on money is a line-of-credit (Not credit cards!!) loan, although these typically have different aspects. You may need outstanding credit and have lots of money coming in to qualify for line-of-credit.
I hope the TV shows aren't encouraging so many to go into this field. It's just adding to the over supply of listings, although regentrification is a normal part of the real estate growth cycle.
2007-09-03 16:18:05 · answer #2 · answered by Casie 4 · 0⤊ 0⤋
YOU ABSOLUETLY CAN!! Unfortunately, the real estate market is crap right now, but there will always be people buying houses.
As for getting a loan, how is your credit? Lenders are closing left and right at the moment, and employment verification and sources of income are a thorn in everyone's sides. If you have good credit and are willing and in a position to put a sizeable chunk of money down, then you should have no problem. If you can find an investor to help you out with the down payment on the first couple of houses, the rest should be easy.
The best piece of advice I can give you is get yourself a realtor. Make sure it's someone you trust and enjoy working with. They will find you every little fixer upper gem there is on the market, and they will negotiate the best possible prices for you. Then, they will put it back on the market for you and advertise it and get it sold. They can also point you in the direction of a good mortgage representative.
There's a great show on The Learning Channel that you should watch called "Flip That House". You have to make sure that you set yourself a repairs budget and STICK TO IT! If you go over it, then it won't make sense to flip the houses because you will be just making ends meet.
And make sure you get yourself a good real estate attorney. That person will be your new best friend.
Good luck! :)
2007-09-03 16:08:05 · answer #3 · answered by n0k0ut 2 · 0⤊ 0⤋
Nothing in life is impossible!!! If you want to start flipping houses though my advise to you is to have good credit or a great cosignor. People tend to get the notion that taking courses in real estate can get you instant knowledge about the field, totally wrong. You would need to pick the right area so start doing your market research and find out which areas have consistent sales and try to focus on it to see what comes up. The market is in shambles right now so make sure that you have the funds to carry your property (carrying cost= mortgage payments, insurance, taxes) for at least six months after you finish your renovations. There are different ways to flip properties, from starting small with a condo which needs little to no repairs to a very nice SFH (single family home) which needs a total rehab. I hope your ready and have alot of patience with this type of market. There are some great deals out there but the problem is selling your houses after you have repaired it. I can talk about this all day but I don't think they will allow me to keep writing let me know if you need more advise.
2007-09-03 15:55:46 · answer #4 · answered by www.whatsmybloodtype.org 2 · 0⤊ 0⤋
You cannot enter into a contract until you are 21, therefore you are on the right path now. Find out as much information as you can about the subject. If you have decent credit, and a stream of income, you should have no problem receiving credit for your first home. Great book on Flipping homes can be found here:http://daniellemarguerite.com/realestate
Click on the link in the box labeled "Risk Free Real Estate Investment" That e-book is immediately available to read and get you started. Good Luck!
2007-09-03 20:56:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I would buy a house and plan to live in it for a while. If it doesn't sell right away you wont be losing money, your just paying your mortgage (VS paying rent at one place plus mortgage payments on the house) Don't get in over your head and get a mortgage you will be able to pay if you end up putting more money in it than you had planned and have to stay a couple of years to wait for it to increase in value. If it sells right away for a big profit then great but don't count your chickens before they hatch.
Expect the best but be prepared for the worst.
Good luck
2007-09-03 16:07:43 · answer #6 · answered by Emily 5 · 0⤊ 0⤋
dont go by the TV shows. They do not show the real headaches in flipping. They are just showing good stuff so their shows will be watched. Also, lenders are starting to come down hard on flippers. Unless you have hard money lenders, you may be discouragingly surprised.
2007-09-04 04:00:28 · answer #7 · answered by Bill P 5 · 0⤊ 0⤋
I'm trying to get into the same thing myself, but I recommend getting a day job and using extra money to buy houses, putting very little into them and reselling them. Good luck, you'll need it.
2007-09-03 15:44:55 · answer #8 · answered by dragonbot 2 · 0⤊ 0⤋
If you have the talent and money to do it it is still viable, but in todays market not recommended.
2007-09-03 15:55:16 · answer #9 · answered by Pengy 7 · 0⤊ 0⤋