Flipping? Experts advice please

[boatboy]

I am young (21) and very interested into flipping real estate. My question is in how hard is it? I watch the tv shows where someone (i might add hardly know nothing) says they are new to flipping yet the flip a house and walk away w/ a profit of 50k. I am a senior in college and I can't quite think why the hell I am here? I currently run a yacht care business that is pretty profitable but I want to get into real estate so bad. I have a lot of contacts such as my stepfather being an electritian,another family memeber being a plumber, and I can do the rest. I feel this gives the advantage of maybe delaying payments a little because coming by the intial capital will be hard.

Lastly, how do you normally finance it. Do you take out a mortgage? or just a large lump sum and work from there? You insight will be very valuable and I would deeply appreciate it.

best of luck
-dave

[timtarpley]

It is definitely not as easy as it looks on tv. In my area you need 20% to put down and good credit and some experience. You also need a written plan for each property you purchase.

[TimTheInvestor]

I too am 21 and live in CT. I am a full-time blackjack dealer but currently looking for my way out of that business and looking to find my niche in real estate. I recently went on a REI cruise and learned a lot from other people and some lenders that were also in attendance. From what I have spoken with in detail w/ my broker, there are a few options. I could get into a place that is in "at least average liveable condition" with 100% owner-occupied financing (1-4 family) and then go for a possibly a., try for a HELOC, although not as easy to pull the money from equity that doesn't exist yet or b., try to get a hard-money loan based on the after-repaired value. There are also rehab type loans, but usually very difficult to get more than 80% of the after-repaired value for purchase and rehab. I had a project I was looking at this past week, but turns out it needed a lot of sill work and thus about $175k just in repairs alone. Good luck, I need it also. I am buying a 4-family rental this summer just to get me going, but would like to keep my eyes open for a rehab too.
Lada

[TJ2007]

Yeah, starting with a small multifamily that you can also live in might be a good plan.

If you don't have a lot of experience in rehabbing - It can be lots of fun, but also the easiest way to go broke REAL fast.

Better to start with something that mostly just needs cosmetic repairs and cleaning up. The financing will be much better too.
Trying to do rehabs with no cash in the bank for repairs & cost overruns is dangerous - don't want to be stuck with the house that you can't finish & you don't have any equity in.

Another Option - find the great deals and give them to an investor that really has the backing to work with it & just take an assignment/ finders fee = LOW RISK

[RG1x]

tj2007 has the right idea. Start finding deals and flipping them to investors for a finders fee.

Or, buy a multi-family, live in one half rent the other - your now an investor.

Or, buy a condo, rent the condo - your now an investor.

Or, if you do not have the funding to purchase or do not qualify, you can assign a contract to an investor, once again for a finders fee.

Do your homework on real estate investing and FINISH school!


Robert Greco
up4salehomes. com

[boatboy]

thanks a lot guys i really appreciate it. i will finish school... even though i hate it!

[chrishummel]

Not as easy as it seems. The first one is ususally the worst. You can expect to go over budget and not complete when you expect to.

[Codythebest]

Flipping properties or contract is quite easy. You just need to know the materials. You don't need 20% down, you don't need good credit. That will just help just in case...
Like Real Estate, it's a number game. You just need to find a motivated seller willing to sell way below market. You will get 1000 NO for 1 YES...
Understand well contracts and you're on your way...
I wrote a coupe of articles regarding that subject on
www.eforeclosureguide.com (http://www.eforeclosureguide.com)
It's little but the idea is there...
Hope this help..

[hollyshelly]

I would highly recommend trying to get Chris Harris from, scbuyshouses.com ,as a mentor. The most successfull investors in the world will all attribute their success for the most part to their coach/mentor(s). Every great team needs a good coach! And in real estate...the more you know...the Fatter your paychecks.

[natemas]

I've purchased several books and courseson flipping, and I've found that all have some useful information, but none are complete. It's best to read. A lot. I've read about 10-12 books and still feel like I learn a little something with every new book.

I did find the course by Dave Whisnant to be the most useful for what I wanted to get into though.
You can download a free portion of his course here:
realestateinvestmentpage dot com

[JChristin]

In some states, it is an illegal practice to pay a finders fee to someone who does not have a real estate license. It is viewed as practicing professional real estate activities without benefit of a license.

In one state, the Real Estate Agency can levy a fine to anyone who practices unlicensed real estate activities. However, it may not stop there. The Real Estate Agency may turn it over to the Attorney Generals office for review and potential prosecution. If found guilty, the person found guilty may be ordered to pay to the court all monies realized from the transaction(s), plus attorney and court costs, as well as any other costs as directed by the court.

In a search engine lookup the term, “unlicensed real estate activities.”

Best of luck!