I am going to look into beginning my first flip. Is there a network of investors for beginning RE flippers? I don't have the cash to buy and rehab my first property but most of the work will not be contracted out, but done by my "family" of handymen. Does anyone know of a site or place in MA where I can find the investors for the projects?
2007-12-23 04:37:27 · 4 answers · asked by BARBIE B 2 in Business & Finance ➔ Renting & Real Estate
Isn't flipping just a memory and a TV show?
Last August some people that had been doing it for years though it was possible still in this article. http://www.getdiscountproperties.com/Is+Flipping+Dead%3F
I noticed that was the last post ever on the web site that specialized in marketing distressed properties.
I thinkg that every body ever since has agreed with this guy.
http://www.homeownersinsurancelowdown.com/2007/05/10_reasons_hous.html
2007-12-23 04:57:17 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You are already making your first mistake...trying to buy property when you don't have a cashflow.
When you start out by purchasing property, you have "hold over" costs where the mortgage has to be paid while you are doing the remodeling, waiting on inspections, waiting for orders for certain items to come in.
It is also very slim that you will sell the home without it being on the MLS...that is why most investors have a Real Estate brokerage license...so they can put the property on MLS, and only pay the 3% commission on the buyer's side.
If your "family" of handyman cannot do quality work, it will show in the overall job. I have seen houses that at a quick glance, look great, but if you take a closer look, shotty painting, cheap fixtures, bad caulking jobs. People aren't going to pay top dollar for a home if they have to go back in and correct what's wrong.
The key is having QUALITY contractors that you will call again and again.
If you don't have the cash and you can't get the credit then you DO NOT need to try flipping.
It's a one-way ticket to bankruptcy.
2007-12-23 13:07:16 · answer #2 · answered by Expert8675309 7 · 1⤊ 1⤋
I invest in real estate in Texas so it is a little different but here is what I can tell you.
You will need to be able to qualify for the loan yourself, especially in current lending environment. Convincing the bank to give you a loan in your name with only money from others will be really hard. Also, most silent money partners want proof you can do the job before trusting you with their money so most flippers finance their first two or three themselves to build a reputation of success.
What you might be able to do is find another flipper and offer to manage and run their flip kind of like an internship for a flat fee of like 500 or 1000 dollars. Basically a project manager. Not the big money, but will get you the experience and reputation you need. That is the agreement I'm offering people down here.
2007-12-23 15:08:00 · answer #3 · answered by b d 2 · 1⤊ 0⤋
Now is the worse time to even attempt to flip a home as prices are sinking and are expected to continue sinking for the next 18-24 months. The market is flooded with homes for sale and no one to buy them. Read the news before you venture off into a situation that will only lose you money
2007-12-23 16:44:09 · answer #4 · answered by Pengy 7 · 1⤊ 0⤋