Does anyone here flip houses?

RayH · Jun 6, 2006

( If your potential partner is a real estate wiz he should have a bunch of money to bring to the table. I have heard many real estate "partner" horror stories, if you can swing it yourself, you will probably be better off. In a short length of time you will learn the business if you really want to. IMO. I have a mutual fund through Vanguard that is into real estate and it has been paying me over 20% in earnings per year since I have had it. A 20% annual return is not too bad for a real estate investment. The fund is called a REIT.
Farwell )

Hes not so much a "wiz". Its more like he has connections. He just built a large house and is cash pour at the moment.
I will probably do this without him but I thought it was worth considering.
Actually Ive got a good bit of my 401K in real estate and its been doing pretty good. It dropped off some earlier in the year but has picked up alittle lately.

RayH · Jun 6, 2006

( If your potential partner is a real estate wiz he should have a bunch of money to bring to the table. I have heard many real estate "partner" horror stories, if you can swing it yourself, you will probably be better off. In a short length of time you will learn the business if you really want to. IMO. I have a mutual fund through Vanguard that is into real estate and it has been paying me over 20% in earnings per year since I have had it. A 20% annual return is not too bad for a real estate investment. The fund is called a REIT.
Farwell )

Hes not so much a "wiz". Its more like he has connections. He just built a large house and is cash pour at the moment.
I will probably do this without him but I thought it was worth considering.
Actually Ive got a good bit of my 401K in real estate and its been doing pretty good. It dropped off some earlier in the year but has picked up alittle lately.

Nat · Jun 6, 2006

Ray, my dad gave me a piece of advice that I still take to heart. He said " never go into halves with anyone except for some food and make sure you are hungry before then cause I know you can eat your half". later, Nat

Nat · Jun 6, 2006

Ray, my dad gave me a piece of advice that I still take to heart. He said " never go into halves with anyone except for some food and make sure you are hungry before then cause I know you can eat your half". later, Nat

Jay4200 · Jun 6, 2006

( He doesnt bring much money to the table but he does bring a healthy real estate background and he knows everyone and their brother (one of my shortcomings because Im relatively new to this area and not much of a people person). If it worked out, it could be a good deal for both of us, if it doesnt, you know how bad it could be. )

Bottom line that no one has mentioned yet, is that in order to find the "steals" that make the business viable, you HAVE to be in the real estate business, at least in this area. No home that can be turned for a profit will make it to the open market, since someone in the RE listing agency will snap it up first. That's where agents make their real money. If you can get an into the inner circle in your area, either yourself or through a partner, then you have a shot. If not, the odds are so far stacked against you, that you have a better chance of being struck by lightning than being sucessful in the flip game, IMHO - at least in a normal or healthy market. OTOH, if the RE market totally craps out and prices collapse, then places with potential will begin to become commercially available.

Jay

Jay4200 · Jun 6, 2006

( He doesnt bring much money to the table but he does bring a healthy real estate background and he knows everyone and their brother (one of my shortcomings because Im relatively new to this area and not much of a people person). If it worked out, it could be a good deal for both of us, if it doesnt, you know how bad it could be. )

Bottom line that no one has mentioned yet, is that in order to find the "steals" that make the business viable, you HAVE to be in the real estate business, at least in this area. No home that can be turned for a profit will make it to the open market, since someone in the RE listing agency will snap it up first. That's where agents make their real money. If you can get an into the inner circle in your area, either yourself or through a partner, then you have a shot. If not, the odds are so far stacked against you, that you have a better chance of being struck by lightning than being sucessful in the flip game, IMHO - at least in a normal or healthy market. OTOH, if the RE market totally craps out and prices collapse, then places with potential will begin to become commercially available.

Jay

Farmwithjunk · Jun 6, 2006

Over the years, I've "flipped" houses, tractors, trucks, unimproved real estate, or anything of significant value. I don't do it full time. Nor do I go looking for specific "objects" to flip. I let them find me. That wouldn't provide a full-time income, but does well to supliment ours.

What I've learned; 1st, not every "good deal" is a good deal. Even the best of "house flippers" get burned from time to time. Hidden damage from termites, previous renovations that don't meet codes or weren't "permitted" when they were done, even quick changes in local housing markets. Move carefully.

2nd; Most "bargains" don't stay on the market long. Be ready, cash in hand (or credit). There are people that have been flipping houses long before that trendy catch-phrase came in to being. They know how to find (and buy) the best bargains. You have serious competition.

3rd. Don't fix 'em up like you were going to live in it. Do just what it takes to get it in the price range you intend to sell at. Don't spend all your "profits" decorating a room that won't see any return on your investment. Leave some things for the next buyer to do.

4th. If you AREN'T a qualified electrician/plumber/roofer/carpenter/ect, find one that will work with you to estimate what cost you're looking at BEFORE you buy the place. Know what you're getting into before diving in head first.

Get yourself a GOOD accountant/tax consultant. The first house I did, I gave Uncle Sam 2/3rds of what I THOUGHT I'd be making. (That applies to ANY business venture)

And be ready to be a nervous wreck until your first house sells. I know I was.

Farmwithjunk · Jun 6, 2006

Over the years, I've "flipped" houses, tractors, trucks, unimproved real estate, or anything of significant value. I don't do it full time. Nor do I go looking for specific "objects" to flip. I let them find me. That wouldn't provide a full-time income, but does well to supliment ours.

What I've learned; 1st, not every "good deal" is a good deal. Even the best of "house flippers" get burned from time to time. Hidden damage from termites, previous renovations that don't meet codes or weren't "permitted" when they were done, even quick changes in local housing markets. Move carefully.

2nd; Most "bargains" don't stay on the market long. Be ready, cash in hand (or credit). There are people that have been flipping houses long before that trendy catch-phrase came in to being. They know how to find (and buy) the best bargains. You have serious competition.

3rd. Don't fix 'em up like you were going to live in it. Do just what it takes to get it in the price range you intend to sell at. Don't spend all your "profits" decorating a room that won't see any return on your investment. Leave some things for the next buyer to do.

4th. If you AREN'T a qualified electrician/plumber/roofer/carpenter/ect, find one that will work with you to estimate what cost you're looking at BEFORE you buy the place. Know what you're getting into before diving in head first.

Get yourself a GOOD accountant/tax consultant. The first house I did, I gave Uncle Sam 2/3rds of what I THOUGHT I'd be making. (That applies to ANY business venture)

And be ready to be a nervous wreck until your first house sells. I know I was.

RayH · Jun 6, 2006

( ( He doesnt bring much money to the table but he does bring a healthy real estate background and he knows everyone and their brother (one of my shortcomings because Im relatively new to this area and not much of a people person). If it worked out, it could be a good deal for both of us, if it doesnt, you know how bad it could be. )

Bottom line that no one has mentioned yet, is that in order to find the "steals" that make the business viable, you HAVE to be in the real estate business, at least in this area. No home that can be turned for a profit will make it to the open market, since someone in the RE listing agency will snap it up first. That's where agents make their real money. If you can get an into the inner circle in your area, either yourself or through a partner, then you have a shot. If not, the odds are so far stacked against you, that you have a better chance of being struck by lightning than being sucessful in the flip game, IMHO - at least in a normal or healthy market. OTOH, if the RE market totally craps out and prices collapse, then places with potential will begin to become commercially available.

Jay )

Im not sure I agree with that, at least not in my area. Around here most RE agents are too busy with listings to worry with flipping. I think most of them try it once or twice is the opportunity arises but they dont make a habit of flipping. I would think that as the market slows, you will I see more agents investing because they will have more time on their hands.

RayH · Jun 6, 2006

( ( He doesnt bring much money to the table but he does bring a healthy real estate background and he knows everyone and their brother (one of my shortcomings because Im relatively new to this area and not much of a people person). If it worked out, it could be a good deal for both of us, if it doesnt, you know how bad it could be. )

Bottom line that no one has mentioned yet, is that in order to find the "steals" that make the business viable, you HAVE to be in the real estate business, at least in this area. No home that can be turned for a profit will make it to the open market, since someone in the RE listing agency will snap it up first. That's where agents make their real money. If you can get an into the inner circle in your area, either yourself or through a partner, then you have a shot. If not, the odds are so far stacked against you, that you have a better chance of being struck by lightning than being sucessful in the flip game, IMHO - at least in a normal or healthy market. OTOH, if the RE market totally craps out and prices collapse, then places with potential will begin to become commercially available.

Jay )

Im not sure I agree with that, at least not in my area. Around here most RE agents are too busy with listings to worry with flipping. I think most of them try it once or twice is the opportunity arises but they dont make a habit of flipping. I would think that as the market slows, you will I see more agents investing because they will have more time on their hands.