Flipping in General

flip_it_fast · #1 02-11-2010, 03:21 AM

Is anyone flipping houses these days? I haven't really heard any talk here about anything currently going on.

I think most people are afraid to try it right now with the economy still being unsteady. I think it's going to take some time for people to regain enough confidence to do it. Who wouldn't worry about putting all that money out and not knowing what will happen!

Whats your past experience been with flipping houses? Have you had success? Did you get the expected profit? How long was the house on the market before it sold? What kind of upgrades and repairs did you have to do?

There is a ton of money to be made in house flipping but you have to really know what you are doing, beginning to end. If not, you may end up way over your head!

coach · #2 01-22-2011, 12:09 PM

I do both flipping and wholesaling. If I was just starting out I would concentrate on wholesaling. The great thing about wholesaling is you can control a contract without any investment. While doing this you can learn the market.

There are rehabbers that are always looking for a good deal. A lot of them are great at rehabbing but don’t spend much time looking for houses. This puts you into a position to meet rehabbers and learn the market before you put out any money of your own. You will have to do some marketing.

flip_it_fast · #3 01-23-2011, 01:18 AM

Hey there Coach! Great to see ya here in NHF!

Can you explain what Wholesaling is? This is something that i've never really heard of. Are you basically finding fixers for people for a fee? Whatever it is, it does sound interesting!

realestatehound · #4 01-23-2011, 01:48 AM

Hey Coach: I am a real estate broker/auctioneer and I love to flip houses. I have been flipping for several years now. I just finished one right before Christmas and I know that's the worst time to hit the market, but you take them when you can get them. I just flipped a doublewide, I don't usually buy them but I had it sold before I bought it and remodled it. I also just closed on a really good one last thursday. I am in Central Ky. and would like to talk with flippers in other area's about ideas on how they remodle their homes, just to get fresh ideas that will help my homes sell quicker. I'm glad to see someone who is actively flipping now. I kept flipping right through the down turn in the market. I hope to share ideas with you and maybe we can help each other with new ideas.

flippinout · #5 01-24-2011, 01:38 AM

Its great to see realestatehound that you were able to keep flipping homes and selling even though the market isnt in the best of shape right now.

But one thing everyone needs to keep in mind is the fact that everyone needs somewhere to live and if your newly flipped homes fall into a category in price of something they can afford, that home will sell.

Do you have any advice for people who are brand new to flipping? Like how to get started? Where is the best place to get a loan to buy the house you want to flip etc.

coach · #6 01-24-2011, 08:27 PM

Hi! Real Estate Hound: It looks like we have some of the same background. I was a real estate broker in Florida for around 20. I also was on the board of the Florida Auctioneers Association. I enjoy talking to someone like you who have been through some of the experiences I been through. I was talking to someone the other day and told them I been to Home Depot around a hundred thousand times over the last 25 years. I have been buying some of my houses using mortgage assignments. Once I learned how to do it I was able to pick up more houses and finance them without using a bank.

badmomma · #7 01-24-2011, 09:40 PM

Well I am excited to see that you two have so much in common. Its nice to know that our forum brings like minded people together. Your experiences are what we novices need.

It really helps to speak with people who have been doing different things in the real estate market for so long. Thank you for coming to New House Flip. Thank you also for all of the answers and taking the time to share your experiences its greatly appreciated.

coach · #8 01-24-2011, 11:41 PM

flip it fast

Wholesaling houses can be done with no money down on the property. I market areas that have proven flip potential. When I get a person who wants to sell their property, I use the formula for wholesaling houses. I contract the house for sixty days. The first thing I do is take the contract to a title company. The two reasons I do that to make sure the title is marketable. Second when I assign the contract to another rehabber or investor the title work is all done and we can close fast. In the formula there is ten percent added in for me for the assignment.

flip_it_fast · #9 01-26-2011, 03:45 AM

Thanks Coach for the great explanation. Thats another side of the housing market that I just didn't have a clue about.

But now you have my interest piqued again lol. What is a "Mortgage assigment"?

Quote:

I have been buying some of my houses using mortgage assignments. Once I learned how to do it I was able to pick up more houses and finance them without using a bank.

I don't mean to bombard you with questions but both you, realestatehound and Jared have me fascinated. I think it's awesome to have the ability to ask you guys questions because your backgrounds are so deep in the business. No wonder you all have been so successful. You know every side of it. Thanks so much. I really appreciate all of your help.

While I am at it... what do you guys think about buying distressed homes. I am talking pre-foreclosures, homes that are on the brink of foreclosure. I know many times you can find a great deal this way because owners want to avoid the foreclosure process. They typically will sell at a low price.

What should we be wary of with distressed homes? I know liens are a concern but what else? Is there anything in particular to be careful of? Would you guys recommend it?

There is just so mnay sides to flipping houses, so many ways, so much to know! It can be overwhelming!

realestatehound · #10 01-27-2011, 02:05 AM

I just closed last Thursday on a short sale. I'm not bragging this is just the way it happened. I watch the MLS system for houses that are priced cheap as they are usually short sales. The one I just purchased was a really good one. I purchased it for $90,500. When I write my contract I put in a contingency that it must have a clear title and must be released by all lien holder as I'm not going to assume any lien or tax bill. The appraiser that I use is a great appraiser and I know that he is really conservitive. To be exact he is 5% less that I think they are worth. He appraised the house for $139,900. I know that I'm going to spend $5,000 to rehab it and putting appliances in. I will have this house ready for the market in less than 30 days and it will be beautiful. I'm going to put crown molding in the living room and kitchen, chair rail in the kitchen, it has a half bath in the basement so I'm going to put a tub in to make it 3 full bath's and put a closet in the family room to make it a 4 bedroom. It will get paint and floor coverings and a beautiful metal looking backsplash. They just listed a house right across the street that is almost the same house for $154,000. I will price mine for $145,000 for a month pay closing cost up to $3,000 for the buyer. A lot of times another listed house will sell your's if they are equal in quality. I expect to clear between $30,000 to $35,000 profit. Short sales are a great way to buy flips.