I want to start a business so I thought of flipping a home, my friends father is a real estate agent, and was hoping out of the deal he could get me cash to fix the home. His daughters boyfriend bought a home threw him and he got him 10,000 cash, I was hoping for 20,000 what do you think? To start a business I was looking to try to get 100,000
May 29th, 2009
I want to start a business so I thought of flipping a home, my friends father is a real estate agent, and was hoping out of the deal he could get me cash to fix the home. His daughters boyfriend bought a home threw him and he got him 10,000 cash, I was hoping for 20,000 what do you think? To start a business I was looking to try to get 100,000
I want to start a business so I thought of flipping a home, my friends father is a real estate agent, and was hoping out of the deal he could get me cash to fix the home. His daughters boyfriend bought a home threw him and he got him 10,000 cash, I was hoping for 20,000 what do you think? To start a business I was looking to try to get 100,000
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5 Responses to “I want to start a business so I thought of flipping a home, my friends father is a real estate agent, and was?”
I think you have a lot to learn about how real estate transactions work before you undertake a project on the scale of several hundred thousand dollars.
Typically, $20,000 won’t go very far toward repairs in terms of trying to increase the equity in a house. In order to successfully flip houses you usually want to buy something for $100k to $200k less than it would be worth after repairs, then invest $50k to $100k into repairs and pocket the difference when the repairs are done.
I think he got the 10k since he is family. For you I think he would consider it more of a business deal or loan, that you would pay back after the house is sold. However in this housing market, I would stay far away from flipping, since its a buyers market rather than a seller’s market, and you may end up spending more than you bargained for.
Flipping is a dangerous thing right now. Houses have to be in demand in the area. So demographics makes a big difference. Sometimes you can invest more in the flip than what you can sell for. Then you have to pay the mortgage while it sits on the market. Many people are finding it better to rent the house out but that takes time to collect the money you want.
my advice to you is right now, in this market, don’t do it! hardly anybody is making significant money flipping homes right now, as it’s an extreme buyer’s market most places. you have to put your own money into fixing up the home, pay the mortgage and utilities and then hope and pray that it sells for a profit (which in this market, you’d be lucky to break even after your renovations).
that is not to say that flipping can’t be lucrative, but you have to know what you’re doing and know the laws. you should try to do some work with local realtors and mortgage brokers. pick their brains and find out what works and what doesn’t. too many people saw those shows on TLC and AE and thought that they could get rich quick by home flipping. what those shows never showed you were the ones that lost their shirts doing this that didn’t know what they were doing. even in the best of markets, flipping homes is a serious business that requires time, patience, saavy, and dedication. don’t think of it as a job where you can put an hour in a day and get a good return. many lazy people got into flipping homes, but when they found out the time and expertise that it takes to make money doing it, they don’t last long.
I have flipped several houses in the last 3 years. I presently have one on the market that is priced right $279,000.00, in the right area, with large lots and good schools and neighbours. Since Sept 08 I have had zero offers!! It is not the house, the price, or the area. All three are great!
I replaced 1 bathroom, kitchen counter and sink, all flooring, all walls and ceilings, switches, landscaping, doors, reno in the basement as it had been rented as an apartment, the list goes on.
Does this sound expensive? About $25,000.00 And I do everything myself. I have a construction company and I can do anything that needs to be done. It still cost me that much and that was cheap. If I had done this for a customer it would have been easily double that.
And again I do this myself. The shows where people are flipping without getting dirty, amaze me! How can they do this when I do it all and still can’t make a hundred grand per flip.
7 days a week and all hours of the night! That is what I have been doing…No joke.
If you want in you can buy one of mine because frankly I want out.
Nobody is buying today like they did last year.
Be very careful with how you spend your budget and good luck.
By the way, I live in Ontario, Canada. I am a Real Property expert through schooling as well as experience.
Mike