Flipping houses?

Discussion in 'Money & Investing' started by Mirage, Aug 7, 2007.

  1. Mirage

    Mirage Administrator Staff Member V.I.P.

    I was watching a show the other day where these people buy a house, fix it up, and sell it all within a months time. Apparently they avoid sales tax or something by doing this, and they make a good deal of money.

    In the show I was watching, they made $85,000 OVER their original investment after fixing up the house and reselling it.

    Anyone think this is harder than it sounds? Seems like a nice way to make some extra spending cash...

  2. Bunny_roses

    Bunny_roses what? no pink?

    It is MUCH harder than it sounds. My sister and her husband went in on a house with 2 other couples from church. They were so excited they were going to flip the house and resell it. that was over a year ago LOL I'm not going to go into the whole story but there was one problem after another and they just did end up selling it but they put more money into it. I think they made 20,000 over what their original investment was, split 3 ways of course. but It is really not that easy and not one of them has said " hey lets do that again"! It was very time consuming.

    Also I was just reading an article the other day, I think somewhere in california about this guy who thought he was going to make a killing flipping houses, he is now in bankruptcy and like millions in the hole because the real estate market right now is not going well and he can't sell them. He sells like one and that is not enough to pay the bills. It takes forever to sell another one.

    It really is a good idea but the market has to be really really perfect for it to work.
  3. dmny500

    dmny500 Registered Member

    I have thought about doing it before but I wouldn't want to go in with other people cause that kills your profit. The key is to buy the right house which can be the hardest part. You need it to be in terrible condition so that you can get a good price and in a good neighborhood so that it would have more value if it was nice and it needs to have potential. Easier said than done but if I tried and failed on my first time I would try again cause you always have bad things happen but usually it's not bad enough to ruin the profit. If you pick the right house bad market or not it will sell, especially if you make it nice. It helps to be hands on and know how to fix things yourself to maximize your profits. I think that guy that filed bankruptcy you were talking about just tried to do too much. You should buy one house at a time and do a quality job and make 50k-80k rather than a bunch of quick cheap ones for less cause then you have more mortgage payments and more houses to sell, keep it simple unless you really start making good money.
    Last edited: Nov 6, 2007
  4. Mt_9

    Mt_9 Registered Member

    Yeah, housing rates are up. It's been on the news about all the interest rates that are inflating and people are losing their homes. My Dad says it's because of the horrible president we've had, and because he's a republican. I just think he's incompetent but, maybe there is some truth behind it.
  5. Nosferatu_Alucard

    Nosferatu_Alucard Undead Intellectual

    It's easy as it sounds, but it's very time consuming. My father does this for a living and is successful at it. If there any specific questions about it, I'll be glad to answer.
  6. Jeanie

    Jeanie still nobody's bitch V.I.P. Lifetime

    it all depends on the housing market. it's not profitable in michigan anymore because the housing market is terrible. nothing is selling.
  7. gamby

    gamby New Member

    If you are just starting out don't rush into it. Buy one cheap finish it then move to the next one. When you do buy a flip their is a process to it all, and you have to be careful and patient. You must shop around for good buys on material, and get three prices on all jobs. I flip houses and I don't do any of the contracting work, I sub everything out. Remember time is money!
  8. AngelsPeak

    AngelsPeak Wanna play?

    But the market will not always be this way. People are so afraid to invest when the market is down, but it's actually the best time if you have the funds available. I'm working with a couple of clients right now who are doing quite a bit of investing in MI homes, they are not looking for immediate profit so the plan is working quite well for them.
  9. merob

    merob Boom!

    Real estate is a corrupt business as anyone would tell you. It's vaguely as easy as it looks, as long as you don't get ripped off and over priced along the way. When you look at the entire process of buying and selling a house with that in mind, you could imagine the obstacles.. but if you have the cash to buy the property then go for it. Both my parents are real estate agents. They have their ups and downs but mainly because they're competing with other people.

    I think you may need some licenses to sell your property for flips btw. You need someone to do contracts!! Bottom line don't get ripped

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