Anyone Doing Property Flipping?

[LeeNoga]

Anyone ever consider the art of "property flipping"?

I think its a great side interest but I know ya have to pick the right homes to renovate and remarket.

Anyone have any words of wisdom and "beware" advice before I dive into the world of flipping?

[sh33p]

Yeah, ensure the property goes up in value before you flip it. heh

[seer]

depends on what location you are talking about?

[latinasojourn]

yeah i know alot about it.

suggest if you are serious:

1. get your agent (or broker's) license---this will allow you to discount your purchases for any property that is listed by the amount of your commission, also gives you easy access to MLS.

2. buy residential properties in areas that are priced no more than 80-100 times the monthly rent---this will give best return on investment.

3. do not get emotional about the property---in the low end rental market people need a roof over their heads and blue collar working people are usually very steady rent paying because they are one paycheck away from the street---small 2-3 unit buildings will give best ROI. don't buy pretty, buy on income potential.

4. don't buy property that needs more than cosmetic cleanup at first---hire some independent contractor tradesmen that can do a fast repaint, new carpets, drapes, and landscaping.

5. try to double escrow if you can---try to buy on contract, tie the property up in a 60-90 day escrow, then immediately market the property and sell on contract with wraparounds, this will increase your leverage and speed the transfers.

6. look at lots of property and make lots of offers. your money is really earned in the offering stage---and making offers just requires time and gas driving around---usually you will need to make about 50 offers per closed transaction with the scenarios described above. but it is no prob to make 50-100 offers a month if you have access to MLS.

ok, learn about real estate transactions and get in the game. see item #1.

[CheneyRumsfeld]

they had a show on The Learning Channel (TLC) about this.
some made money, some got screwed bad, be careful.
myself I would say this is for people who know real estate and home remodeling real well or you are going to get burned. if you don't know at least one of these from years of prior experience I would stay away or get a parnter who really knows his stuff.

[beemk]

Originally Posted by latinasojourn

yeah i know alot about it.

suggest if you are serious:

1. get your agent (or broker's) license---this will allow you to discount your purchases for any property that is listed by the amount of your commission, also gives you easy access to MLS.

2. buy residential properties in areas that are priced no more than 80-100 times the monthly rent---this will give best return on investment.

3. do not get emotional about the property---in the low end rental market people need a roof over their heads and blue collar working people are usually very steady rent paying because they are one paycheck away from the street---small 2-3 unit buildings will give best ROI. don't buy pretty, buy on income potential.

4. don't buy property that needs more than cosmetic cleanup at first---hire some independent contractor tradesmen that can do a fast repaint, new carpets, drapes, and landscaping.

5. try to double escrow if you can---try to buy on contract, tie the property up in a 60-90 day escrow, then immediately market the property and sell on contract with wraparounds, this will increase your leverage and speed the transfers.

6. look at lots of property and make lots of offers. your money is really earned in the offering stage---and making offers just requires time and gas driving around---usually you will need to make about 50 offers per closed transaction with the scenarios described above. but it is no prob to make 50-100 offers a month if you have access to MLS.

ok, learn about real estate transactions and get in the game. see item #1.

awesome advice. especially #6. never be too scared to make offers too low. if you throw enough shit at the wall some of it will stick. i got my house for 35% less than asking price

[AlienQ - BANNED FOR LIFE]

With the changes in interest rates its going to be a dying fad.

[sweetcuties]

Originally Posted by CheneyRumsfeld

they had a show on The Learning Channel (TLC) about this.
some made money, some got screwed bad, be careful.
myself I would say this is for people who know real estate and home remodeling real well or you are going to get burned. if you don't know at least one of these from years of prior experience I would stay away or get a parnter who really knows his stuff.

The show your talking about is Property Ladder... one of my fav's http://tlc.discovery.com/fansites/pr...rtyladder.html

Flips are only worth if if the market is hot, otherwise you're gonna deal with a rental, lease opt or taking a loss.


Just got an offer on my new build, I countered. Currently, I'm in a buyers market, which sucks.

[Nifield]

ive been doing a bit of real estate investing on the side, mostly for positive cashflow and not flipping though... checkout my personal real estate bio site: http://www.freedominvestments.ca

[gdog]

I got a great connection to handle your 1031 exchange money so you can defer your taxes and maintain cash flow.

Hit me up gavin at adult-ventures.com if you are doing this.

G