Questions on house 'flipping'

B

brownsfan019

My significant other is really interested in learning more about flipping houses, since we seem to watch Flip this, Flip That, Property Ladder, Watch how easy this is, etc. on TLC. TLC is very good at showing how well things go and how easy it is.

So, I have a few questions that I am hoping some fellow ET members can help me with since I do not know anything about flipping houses.

> Where would you recommend to start to learn about this? I've seen the infomercials, gone to 'special seminars in your area', etc. and I really don't feel like buying a whole bunch of stuff and hoping she reads it.

> What is the good AND bad about flipping? We are not interested in renovating and then becoming landlords, just a quick flip and move on.

> Is this a viable 'job' for someone if they got serious about it?

Anyways, I'd appreciate any feedback, especially from those that have tried - successfully or not - as I want to make sure I can provide a realistic view of this to her and not what we simply see on TLC.
 
Quote from brownsfan019:

My significant other is really interested in learning more about flipping houses, since we seem to watch Flip this, Flip That, Property Ladder, Watch how easy this is, etc. on TLC. TLC is very good at showing how well things go and how easy it is.

So, I have a few questions that I am hoping some fellow ET members can help me with since I do not know anything about flipping houses.

> Where would you recommend to start to learn about this? I've seen the infomercials, gone to 'special seminars in your area', etc. and I really don't feel like buying a whole bunch of stuff and hoping she reads it.

> What is the good AND bad about flipping? We are not interested in renovating and then becoming landlords, just a quick flip and move on.

> Is this a viable 'job' for someone if they got serious about it?

Anyways, I'd appreciate any feedback, especially from those that have tried - successfully or not - as I want to make sure I can provide a realistic view of this to her and not what we simply see on TLC.
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!!!!!!! I'M CALLING A HOUSING MARKET TOP !!!!!!
 
Ratboy has a point. Most of the "easy" money that is reflected on the television programs, has been taken out of the market. Think about how long it takes to film those episodes, and when they were done, probably last year. The market has shifted in many places since then. There is still money to be made, but it's like trading. When market shifts, it's usually the seasoned vets that can still make a living. Think about how many people are chasing the same thing. I am not trying to discourage you from pursuing house flipping, just trying to debunk the myth that it's easy money. Because, it isn't. Like in trading, there is a simimlar amount of homework to be done. Only with flipping, I think that much more of it if subjective. In trading, we can quantify risk with charts, stop losses, etc.

In flipping, you have to know what you are looking at, so that you do not end up taking the floor up, and finding a $20k surprise repair. I know folks that have experienced this. You need to know how to deal with contractors, and VERY importantly, who will SHOW UP, and do QUALITY WORK on BUDGET.

Yes, it is a viable career. But go into it with the idea, that there is also a requisite amount of leg work. Most of the people putting on the seminars are making their $ show casing there wares, b/c they either can't make $ flipping or their strategy has changed, etc. Very similar to the get rich quick trading seminars - they make more $ selling a service.

Hope it helps, there are some good books out there, but an added note, many of them contradict one another. So finding things that work, IE- locating motivated sellers, and buying at a deep discount (both necessary ingredients to profit) - are not secrets and have been done before. Kinda' like those $400 Ferraris at gov't auctions. Best of luck.

Gordo
 
Many have just stopped building in Miami...condos are taking longer to sell and many will not sell at the going price as of today; My suggestion is wait for the first leg down of pain and then on the second leg maybe start buying to hold for a longer period ( i.E. not flipping ) .... FORCLOSURES..but be ready to hold some pain yourself IMO...
 
Thanks Gordo. I kind of had an idea, but just wanted some more input from others. I appreciate your reply.

Quote from gordo:

Ratboy has a point. Most of the "easy" money that is reflected on the television programs, has been taken out of the market. Think about how long it takes to film those episodes, and when they were done, probably last year. The market has shifted in many places since then. There is still money to be made, but it's like trading. When market shifts, it's usually the seasoned vets that can still make a living. Think about how many people are chasing the same thing. I am not trying to discourage you from pursuing house flipping, just trying to debunk the myth that it's easy money. Because, it isn't. Like in trading, there is a simimlar amount of homework to be done. Only with flipping, I think that much more of it if subjective. In trading, we can quantify risk with charts, stop losses, etc.

In flipping, you have to know what you are looking at, so that you do not end up taking the floor up, and finding a $20k surprise repair. I know folks that have experienced this. You need to know how to deal with contractors, and VERY importantly, who will SHOW UP, and do QUALITY WORK on BUDGET.

Yes, it is a viable career. But go into it with the idea, that there is also a requisite amount of leg work. Most of the people putting on the seminars are making their $ show casing there wares, b/c they either can't make $ flipping or their strategy has changed, etc. Very similar to the get rich quick trading seminars - they make more $ selling a service.

Hope it helps, there are some good books out there, but an added note, many of them contradict one another. So finding things that work, IE- locating motivated sellers, and buying at a deep discount (both necessary ingredients to profit) - are not secrets and have been done before. Kinda' like those $400 Ferraris at gov't auctions. Best of luck.

Gordo
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Even though my fellow et colleagues are correct, not all markets in the US are the same.

Places like Miami are glutted by over supply and too much competition but I am sure there are many parts in the States were one can make a good penny in the business still.

I would recommend buying Ron LeGrand's material on ebay first. His material was the best I could find when I started. I went to several of his 3-5K boot camps and felt it was money well spent too.

Good luck.

:cool:
 
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