House flipping.
 

Tell me what you know please.
Basicly lets start a conversation about this topic.

BTW a pre-fuck you to the first joke regarding actually flipping a house be it by brute strength, wind, earthquake, whatever.

FHA foreclosures :winkwink:

The real estate motto I live by is:

"Buy the worst house on the best block"

Your best bet is to find pre-forclosures and deal with an owner who knows he is up shits creek without a paddle.

Been doing it for 12 years, I know

Ok houses in need of minor repair, curb appeal, mild to medium remodels, and basicly priced below typical housing appraisal values in a 1/2 mile radius (should that be bigger?)

Accurate, radius would depend on geographic, social and municipal factors.

For more rural areas comps may have to be figured on a broader radius.

Have you been watching those tv shows? The idiots on Property Ladder make me think anyone could do it.

Obviously

What tv shows?
Am I missing something?

Rural is obvious.

Anyone know if anyone has built any sort of good software to plug in numbers and such to assist in this radius appraisal situations?

Yes you need a bigger area. go with a neighborhood versus a circle.

That makes sense. Basically that's what I did. Been working my ass off ever since but it's looking good now and I think I can get close to double what I paid for it a year ago.

Please share your experience
Tell us the simplest method you use for finding qualified pre-foreclosures in detail?
What % of appraisal value are you paying?

Court documents, also have friends in the subprime lending business who run across alot of homes ready to go to the chopping block, and we make an offer to the owners to get them out of jams and salvage their credit. I have no hard and fast rules about appraisals percentages, I check the house out versus the as-is condition appraisal then will figure what it will cost me to do the least amount possible as far as briging it up to or damn near market value. 1/2 mile comps are best when shopping lenders, you keep widening your comp range and it looks like your stretching to get a value and justify the cost to the lender. Obviously if the house is unique but still in an urban area they will understand the widening comp range. But if its just another pre-fab split level house, keep your comp range around 1/2 mile. Thats just me though

True. Buy a real fixer upper in a great town WITH a great school district. If you have the money to do this you will win everytime. The key is being able to afford buying it and at least fixing it up a little bit before putting it back on the market.

Flip That House on Discovery Home - havent watched this one
Flip This House on A&E - professional company that flips houses
Property Ladder on TLC - follows first time home flippers. This is my fave.

I made one deal last april for about $6k in profit. THe market has real potential. Issue is, I hate dealing with morons and it takes a while to find houses in my area worth flipping.

All in all, it was about 30 hours to make $6k or so, plus all the time to learn the ropes (maybe another 80 hours and $1200). Not bad, but its not very "rewarding" for me so I only did the one deal.

I just signed a contract to sell an investment property today. I bought a shitty row house in Baltimore for $30k, spent about $30k to fix it up. It just went under contract today for $96k, was on the market for about a week. I was only asking $87,900, but people just kept making better offers :winkwink: . I bought it on June 6th, 2005. Used contractors to do all the work, I didn't hammer one nail or lift one paint brush.

Bingo.. I been doing it for a while now. I love it.. I love the money in it..

So Hooray

I actually kept a diary on my last flip online on my site.. Bought it on July 28th for 163500, spend 20k on contractors/materials, never did any work.. Sold it on September 4th for 227,500. Closing on October 20th. It was a long closing date (some hitches in there)

If you would like some information regarding taxes etc etc, get a good accountant, or you gonna get nailed. Unless you do an exchange! My advise however don't do that.

my icq is 18314311 if you have any questions

I know an Ex Webmaster who is pretty heavy into the market in your town. Maybe you know him? ICQ me 18314311

Here is my only advice I can legitimatilly give you..

Don't get a mortgage!
If youre credit is good get a line of Credit. Pay cash for the house! After your first flip with a Mortgage Company you might have a problem getting a second Mortgage for the 2nd flip. I would strongly suggest you pay cash for a house.

Talk to your bank, its not that hard to get that.. 'hahahaha=

Thanks, was going to ask that. My current property is 100% paid off and I was looking at using a home line of credit.
I am already in the rental game but I specialize there in mobile homes. So this is much different territory for me.

P.S. not wanting legit legal advice and that sort of stuff. Will dig that up and use pros for that. I just want various tips, experiences, and so on.

bumpers.

if you don't believe in evil...




... WORK IN REAL ESTATE. lol

I just heard that from a friend.

you need a great big spatula and a red bull or two :)

Buy cheap, renovate etc, and then sell before the taxes are due.

you get a tax credit from previous owner

It really isn't worth doing in many cases. Unless you work at it full-time, only stick to areas that have high housing inflation rates, like Miami, Phoenix, etc... In those cases you can buy a decent house with minor or no repair needed and sell it for 40% + more a year later. To do it seriously though, you need many good contacts, as with anything. You need get well aquainted with major construction/repair ppl in the area, bankers, etc... That way you can look for homes in say, mill towns, and get them for 10-20K each on a line of credit. Hit up your contacts and within a week or two you should get an average of 25% return. The better the contacts, the faster you can move more than one property per month, the more you make... because you don't even have to pay interest on your credit line then either.

Anyway.. bottom line.. the more ppl you know and the more you plan the better.. more cash to startup is obviously good too... there are just so many ways to go about this...

THe dude is kind of a ckook, but every week he speels out exactly what to do in his podcast. His shit is step by step, its so layed out any moron can do it. It gets repeatative & there is hours of audio to listen thru

http://Success.org/recast/re.xml

If you think you have to be in an area with a booming real esate market your a compleate moron. I have a specialty area that hasnt seen appreciation in 20 years, & my numbers will whoop any metro area.

Tips;
* I see atleast 100 places a month. (get familar with a set area, you need to be the expert on prices in an area, not someone else that you have to refer to for valuation. Agents have opinions & while valuable, they are still just opions)
* Get an agent that is willing to carpet bomb out rediculious offers. (Ill make 20 offers, and only secure one deal) (I average 3 purchases a month)
* The good shit is not in the MLS! again the good shit is not in the MLS. (Your not the only realesate investor in town, once a place is listed everybody who matters has seen it already) (you need to seek out & convince people to sell their houses to you)
* DO NOT, DO NOT lock yourself in on a single agent. Many agents will want you to sign an agreement, making them your sole agent. FUck that! Get an army of agents working for you. If your a serious buyer, then agents will bring shit to you. THe opurtunities come to you, teh more agents teh more opurtunities. :warning

Anybody else agree were in for a depression, because of these bullshit housing markets?
30% of loans last year are interest only!
If you have an intereset only loan, you are teh biggest fucking moron, & should go see a finacial planner imediatly, so he/she can tell you, your a fucking moron & then how to get out of the hell you have crated for yourself.
For those of you with Negative Am, loans the rest of us will be reading in the paper how you decided to suck on the end of a gun barrel in the near future.

The great depresion was set up by the realestate greed in florida, people were flipping properties in hours & days.

The depression saw teh greatest transfer of weath in history! what side of the transaction will you be on?