I'm 17, and I saw a show recently on tv where this family of three own a business in realistate and find houses for people and on the side renovate houses that they (the family of 3) live in and sell them for more. They put in 100,000 in renovations in one house and increased the value of the property and house by 200,000 and soild it for 350,000 when they payed 150,00 forit in the beginning. Is it a good field of work to get into?
I was thinking tho, they have people helping them all the time with renovating, so they have to pay them wages and whatnot, so the 200,000 wouldn't be clear to them...am I right?
2007-11-24 11:28:20 · 13 answers · asked by Jamie-Lynn 3 in Business & Finance ➔ Other - Business & Finance
They would have to pay for construction, but probably not more than $5000. This is a complicated question because there are so many factors to flipping houses. Location, how much time you spend working on the project (time is money), the price you pay for the house versus the price of the surrounding properties, and the current house market, which frankly isn't so hot right now.
2007-11-24 11:32:27 · answer #1 · answered by Trina O 3 · 0⤊ 0⤋
Yes you are right. It's possible to make money "flipping" houses, but you really have to know what you're doing, and have a lot of luck too. And now is a bad time to get into it - houses in many areas are selling very slowly, and for a lot less than their "value" would have been a year or two ago.
The TV shows are fun to watch, but don't take them as gospel. And even "Flip This House" sometimes shows someone who ends up losing a lot.
2007-11-24 11:55:39 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
so, you're just 17? ....well, yes it is true that you can lose much of your profits to trademen...but that is where smart shopping comes in, and making the right deals. And...as you go, you pick up skills..you just don't hire someone without paying attention to what they're doing. You learn to do as much as you can and you learn what are fair prices so that other people don't over charge you... and soon your profit margins increase. Over all, it is a very lucratve business if you can deal and do alot of the work yourself. A handyman type person is always more affordable than a contractor, and they are more willing to show you how they do things, and will even allow you to work as their helper, thereby saving money . I would reccommend this to anyone...if you are willing to work hard and learn, there is great potential for finacial gain and freedom to do as you please. I decide when to travel, when to work, and I dig it all.
2007-11-24 11:43:15 · answer #3 · answered by justagorilla 6 · 0⤊ 0⤋
It's very hard. Especially right now because of the credit crisis. It's a full-time undertaking that is full of frustration that no T.V. show would ever tell you. It can be very profitable but for only the very experienced. The shows only show you the best part of it and try to sell you on the idea of you making alot of money. It isn't like that at all. If it was, they'd be doing it instead of selling "how to" stuff.
2007-11-24 11:36:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
real estate is always a good field to get into. alot of people got rich because of it. however i heard that the real estate industry is loosing money right now coz people either are not that into buying new houses or just simply can not. there are also alot of realtors and competetion and the market isnt that big right now. SO personally i dont think its a good idea
2007-11-24 11:33:00 · answer #5 · answered by dark_slasher91 2 · 0⤊ 0⤋
They figure the wages into their business plan. Like most real estate jobs, there is good money to be made. The problem is with the risk. The market can dictate your sales. I'm too big a wuss to have a job like that, but it can be lucrative.
2007-11-24 11:35:10 · answer #6 · answered by stevenhendon 4 · 0⤊ 0⤋
no way! there's many stories being covered in the news that real estate is not very profitable right now. You can probably surf cnn or any other news source to find some stories, but so far, the consensus seems to be no.
2007-11-24 11:33:00 · answer #7 · answered by ? 4 · 0⤊ 0⤋
The real estate market crashed in 2006 and has not recovered. While it is still possible to buy distressed properties, repair them, and resell them for a profit, it is much, much harder to do these days.
2007-11-24 11:31:59 · answer #8 · answered by Nicole B 5 · 0⤊ 0⤋
the market is curently to unstable for this type of venture
2007-11-24 11:32:45 · answer #9 · answered by Anonymous · 0⤊ 0⤋
ABSOLUTELY NOT!
worst time in history! for real state
2007-11-24 12:06:01 · answer #10 · answered by Anonymous · 0⤊ 0⤋