Posted on Tuesday, 13th October 2009 by admin
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Also, is it advisable to start a business solely for buying houses and flippping them for a profit?
New York City Job Listings
Also, is it advisable to start a business solely for buying houses and flippping them for a profit?
New York City Job Listings
Tags: Buying Houses, Start A Business, Start Business
Posted in Renting & Real Estate | Comments (13)
October 14th, 2009 at 4:28 am
Dolphin Hosting
Flipping is illegal. Many lenders will not lend to a buyer who is buying a home that the person who bought a home just to fix up and sell. A flipper must keep a home for 6 months. This shows seasoning. It is said that flippers have caused homes to spike in prices during the last 5 years.
October 15th, 2009 at 11:57 am
I know of a few people who make a living out of flipping houses. The hardest parts are having the right connections to find undervalued property. They deal with banks, agents and homeowners. Also, due to the condition of alot of these homes you must have available cash (they use equity from other properties).
October 18th, 2009 at 4:11 am
New York City Job Listings
Excellent question and this is something I discussed in a blog I write. Check it out.
October 21st, 2009 at 2:46 am
Small Business Web Hosting
My bf makes a living doing it. That is his sole income and he makes far more then I ever will at an office job. But you have to know what you are doing to be successful. Ther eare so many people trying to get into the business making it harder and harder to make money. Find a real estate agent and ask them to show you fixer uppers, start from there. But be careful, know what you’re getting youself into before you make an bad financial choices.
Foreclosures are another option, you can get good deals that way, but do your research – it is easy to make a mistake when you don’ tknow what you are doing and end up making a bad purchase.
October 21st, 2009 at 6:26 pm
RSS Feed Reader
Flipping really isn’t illegal if you are working within the lender’s guidelines, and state laws. However, the net proceeds you get after selling is subject to a hefty capital gains tax. As my CPA explained to me, buying a house and flipping it is like acquiring inventory improving it and reselling it for a profit.
You also have to understand that “profits are made when you buy the house” which means that you should be well aware of how much your property will be worth after all the repairs and upgrades have been done. So you should really be looking for “undervalued properties” if you plan to acquire a flip house.
As far as mortgage is concern you should look for a product that has a no pre-payment penalty. Here’s a formula…
purchase price + repairs& upgrades + holding cost + selling cost = Total investment
Selling price – Total investment = pre-tax profit
I’m a mortgage specialist and I work with these investors on a daily basis.
October 23rd, 2009 at 9:19 am
Dolphin Hosting
here is a great resource to get started
October 24th, 2009 at 3:55 pm
Small Business Web Hosting
I retired early by doing real estate deals–I found “flipping” is not the best route to go!
My wife and I would look at 20 to 30 homes for everyone that we would buy….Remember, no one is stupid enough to sell you a viable good home with real profit potential with “no money down”.
Instead establish a line-of-credit prearrangement with a good bank; whereby, you put down 15% and the bank finances the rest.
Get enough to buy the home and also enough to fix it up in good condition!
Rent those homes until they buy you a free-and-clear Title! As one home pays off–apply that money to the one that has the next earliest payoff date. Toward the end you will have six or eight homes free-and-clear paying the notes down at accelerated rates.
All of a sudden, you have a bunch of clear titles on all these homes. Next, as renters move out you fix them up and sell them at top-retail– carrying the notes yourself. If you get one back occasionally, just clean it up and sell it again at the new higher market value.
I have notes coming in from real estate in which I financed at 10% interest for a number of years to come.
If you noticed, I had a good job and lived on that money while plowing ALL the equity gained back into the purchase and payoff business of real estate.
Don’t tell me this will not work: I retired at 56 with a lot of streams of income coming in monthly and have never had to touch my IRA-in fact via the stock market it has tripled in 9 1/2 years! Good luck to the few that will follow my advice.
October 25th, 2009 at 9:35 pm
New York City Job Listings
There are great books on the subject at your local bookstore. Also, check out this website:
If you have no money and/or no credit, the best way to get started is to use assignable purchase option contracts until you can build your cash to purchase the properties yourself.
And yes, you should start a business entity to shield your liability and income. My research indicated an S-corp because I am a real estate professional as well.
If you cannot find this info on your own, I can get you started and at $200/month. You’ll also have your hand held during that time. Let me know if you’re interested.
The key to this business is determining value. So keep that in mind.
Regards
October 27th, 2009 at 9:49 am
Hide Folders
Good luck.
It is a LOT of work!!
Try watching PROPERTY LADDER and FLIP THIS HOUSE before you think about doing it.
October 28th, 2009 at 10:11 pm
Free Screensavers
If you are not familiar Dont,if you thinking of this type of business,get someone which is good in this trade to help you for a start.(normally an estate agent)
Try not to flip too much houses at a goal.(my suggestion for a start try 1 or 2 properties until you are more familiar)
Do not invest your monies on 1 area, try different areas or even countries you may think of potential.
Good Luck
email
Coldwell Banker Real Estate (Singapore)
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