I want to try fixing and flipping a piece of real estate.
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maybe something as capital intensive as a house isn't your best choice right now until you figure shit out and at least have a direction.
What does $10k - $15k get you over there? That must be pushing it for an updated kitchen, bathroom, paint inside and out; especially if using subbies.
OP: buddy up with a good real estate agent to know what does and doesn't work in the area.
Interior Paint, some flooring (carpet & a little tile work), replace/fix a couple doors, fixing up misc. damages, and some gardening work.
Closer to the 15k but you can get a pretty good bit done if you work with a good contractor that isn't with a bigger company.
Very Rough estimates based on a couple deals I've been apart of: Exterior Paint is usually ~3k for single family. Updated Kitchen 8k-12k, (2) bathrooms ~5k, full landscaping 5-10k
You need a lot more education before you make any moves. Study real estate for a solid 4-6 months before jumping in. Making the right connections is as important as the education. Finding a good GC is not easy
I would suggest rather do not go on the blog comments and put in more of research before investing.
But still the idea of buying a piece from auctions seems legitimate and worthy.
The only thing is after buying the property it would require you to put in loads of efforts on rehab and working out better methods of rehab as well.....
But still the idea of buying a piece from auctions seems legitimate and worthy.
The only thing is after buying the property it would require you to put in loads of efforts on rehab and working out better methods of rehab as well.....
Sign up to biggerpockets.com and spend NO LESS than the next 12 months researching and talking to flippers.
You can make serious money flipping houses, but you can also lose your shirt. The more you know and understand the markets, the better it gets.
You can make serious money flipping houses, but you can also lose your shirt. The more you know and understand the markets, the better it gets.
Contractors WILL Rip you off. I don't even want to think of how many tens of thousands of dollars I have lost to bad contractors.
Real estate is about building systems : Methods to locate potential properties, valuate them after you've picked the best, assess their rehab costs, then determine potential margins and a exit strategy.
I know a flipper here in my area that made a few million dollars from 2001-2005. In 2006 they went under on one or two bad flips. That's how it works if you don't know what you're doing (And yes, you can make several million and still not know what you're doing).
Real estate is about building systems : Methods to locate potential properties, valuate them after you've picked the best, assess their rehab costs, then determine potential margins and a exit strategy.
I know a flipper here in my area that made a few million dollars from 2001-2005. In 2006 they went under on one or two bad flips. That's how it works if you don't know what you're doing (And yes, you can make several million and still not know what you're doing).
Always interesting to read this type of thing, as a contractor, investors always want no one to make a cent over basic wages, choose the lowest bidder and then wonder why things go wrong. Not saying this was you, but it struck me when reading it.
Funny how this applies to almost anything. Commodities, Real Estate, Internet Marketing, Stock Market - you name it.
I think I may just invest in rental properties instead. It will take 10-20 years to pay off, but the risk is a lot smaller. And it's easy to find cash flow positive properties.
10 years to "break even" on a rental? Where are you living?
It's 30-40 years here (repairs not included).
This 1 simple trick to house flipping made this Colorado mom rich...
The trick...
Pick up mexicans outside of home depot.
The trick...
Pick up mexicans outside of home depot.
Im involved in real estate but not interested in flipping, just long term rentals (maybe short term rentals soon if it squares up). But for me to get involved in RE it had to do with excess cashflow from my business. If i didnt have the excess cashflow i wouldnt dream getting into RE for the simple reason that costs tally up much more than estimated, so i made sure the money i had was money sat there doing nothing so to speak, money i didnt need and that i could set for long term investments.
On the other hand, a friend of mine who has built multiple timeshare resorts, been involved in land banking and all sorts to do with property exploitation. He is in his 60's and practically retired (bored). What did he do?
He purchased 3 '9-seater' family vans.
One he rents long term, the other two are short term 'weekly' rentals.
His total investment was approx. 13k/15k.
His estimated returns/month are approx. 2k/3k.
Worst case scenario he only has one rented out long term (1k/month).
Pre-costs hes looking at 12k/year, which if you include his initial investment hes practically 20% of breakeven (insurance, repairs blablabla).
Less than 2 years to be in profit vs. 10/20 years to be in profit.
Property is what people do with excess cashflow from my own experience meeting people.
But his family vehicle rentals is not only an investment but a business which has money working for him.
Of course, he keeps his 'business' discreet, you know what im sayin'?
Debt is a no no unless you know what you are doing.
On the other hand, a friend of mine who has built multiple timeshare resorts, been involved in land banking and all sorts to do with property exploitation. He is in his 60's and practically retired (bored). What did he do?
He purchased 3 '9-seater' family vans.
One he rents long term, the other two are short term 'weekly' rentals.
His total investment was approx. 13k/15k.
His estimated returns/month are approx. 2k/3k.
Worst case scenario he only has one rented out long term (1k/month).
Pre-costs hes looking at 12k/year, which if you include his initial investment hes practically 20% of breakeven (insurance, repairs blablabla).
Less than 2 years to be in profit vs. 10/20 years to be in profit.
Property is what people do with excess cashflow from my own experience meeting people.
But his family vehicle rentals is not only an investment but a business which has money working for him.
Of course, he keeps his 'business' discreet, you know what im sayin'?
Debt is a no no unless you know what you are doing.