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Anyone else flipping?

Discussion in 'BlackHat Lounge' started by tripphxc, Sep 12, 2009.

  1. tripphxc

    tripphxc Junior Member

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    I have started to get into the flipping in the real estate field because their seems to be a good income from their. my brother is a Realtor and my mom is very much into the hole house scene, but people are saying flipping right now is a bad idea, i just wanted too see if anyone else on BHW does flipping and maybe give me some pointers and advice, also are you successful and is their a lot of money to be made as they say their is?
     
  2. TheTRUTH

    TheTRUTH Regular Member

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    No one here would be able to tell you how your local market is doing.AS A WHOLE the real-estate market is down, and there is a backup of homes avalible.This may not be the case in your area.
     
  3. tripphxc

    tripphxc Junior Member

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    Yeah i know, that is true. But i also like to get advice on buying and how you guys approch the buyers and just some extra motivation
     
  4. TheTRUTH

    TheTRUTH Regular Member

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    Like you said, your brother and mother are in the real-estate field.Ask them.

    Also pick up some books.Reading never hurts

    Heck, even Google, might save you the cash from buying the books.

    But.You would fix the house up and list it with a realtor, and they would try to sell it for you and take a cut.
     
  5. proexploit

    proexploit Guest

    If you've got the cash, buying now and then selling in 5+ years could net you a lot of change. Of course, I could be wrong but I'm willing to stake my money on it.
     
  6. littleuser

    littleuser Registered Member

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    One thing is for sure, it's a great time to buy real estate.
     
  7. playercool

    playercool Junior Member

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    Here is my take. I have made my sole income from real estate for the last 3+ years...until BHW of course.

    The market pretty much sucks ass right now. It is a buyers market. They call all the shots.

    Compared to a couple years ago there are 90% fewer buyers. I know this figure sounds crazy but it really isn't. If you could fog a mirror you could get a loan. Now they are actually verifying things again. You need a minimum 5% down payment to get a conventional loan and 3.5% for FHA. So people actually need down payments. No such thing as 100% loans anymore. So naturally houses are sitting on the market longer. I do full rehabs and my turn around time from day or purchase, rehab, sell, closing averaged 5 months. Now the average is 8 months. This adds major holding expenses.

    House prices are dependent on your location of course. In my area no one wants to admit that houses have fallen. See in Dallas we didn't have any bubble(NONE). Regardless what sold last year for 100k now sells for 90k. No one wants to admit it around here but numbers don't lie. The problem in my area I am not seeing any of the shit holes selling for less than what I was buying them last year for. So I am having to pay the same amount for them but sell them for 10% more. Then tack on the 3 extra months holding expense and as you can imagine the margins are extremely thin.

    Yes the 8k obama gift has helped some but really only for low end houses. In my area think under 100k. This obama gift is the stupidest thing I have seen. See the problem with our economy stems greatly on the housing market. We made loans to people who shouldn't of gotten them. You should have proof that you are worthy of a loan and we got to the point that we didn't care anymore. Ohh you have a 500 credit score no problem. Ohh you make 1k a month? No problem you can afford this 300k house. Ohh you have a history of not even paying your utility bill? Your CC bill? You car payment? Don't worry that is ok you can buy a house....we trust you.

    This is the same thing with this 8k tax credit. I can't believe how many people I meet who are buying a house because of this...and you know what..they shouldn't be buying a house. They are not worthy. They say so much stupid shit. Ohh man I am gonna get 8k I am going to buy new furniture. I am going to pay a CC off. I'm gonna blow it on(insert some stupid thing here). They are seriously only buying a house because of the 8k tax credit. That just isn't logical. They are putting the wrong kind of people into houses. I will take a wager from anyone for my entire net worth that a majority(51%) of these people will default on their loans within 3 years.

    I have not bought a house this entire year. I have been hesitant to purchase anything. I am scared for the first time. I am seeing deals that look good but for some reason I won't pull the trigger. Houses are sitting so long on the market. It is very scary when months go by and you don't even get a nibble. I have reduced houses prices to just crazy low amounts to move them. I have wiped out thousands of dollars on house price just to move them. I have lowered house priced 60k in a day just to see them sold. Lowered a 90k house 15k the other day just to move it. 2 years ago the house would have sold for close to 100k and now I am taking 75k. Think about that. When I bought the house in December of last year I put a ARV of 95k on the house. As you can imagine my profit margin is now very thin.

    There are some bright spots though. If you don't mind being a landlord now is a great time to buy. I have some friends who are a landlord and their vacancy rates are the lowest they have ever seen them. If someone moves out someone else is moving in immediately. Rents are strong.

    If you are thinking of getting in go read this forum. www.flippinghomes.com
    I would spend at least 100 hours reading before you even consider buying a house. Education will save you thousands. Then if you think you really wanna do a day buy something. Be ready to lose 30k. If you can make terms with losing 30k you can probably invest. I only say this because a lot of people lose money on their first deal. Just accept that you are paying for an education.
     
  8. JonesersRX7

    JonesersRX7 Regular Member

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  9. luckykittypurrpurr

    luckykittypurrpurr Registered Member

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    hubby and i bought the house we are currently in to flip. we got money from the uk when it was like 2 dollars per pound and so we already made money on that. but wanna wait till it goes back up. we bought a repoed one for just under 100k and its worth 220 and not even finished renovating it (appraiser didnt add a new roof in and new florida room).... condos just got built up across the street so it should raise the value too. we are in south florida if youre wondering ;)

    but ya we started this "flip" like 2 years ago, LOL, we move to a diff area for the summer so we dont have a lot of time and been waiting for the market and currecy exchange to get better. the houses here in florida are cheap as chips. the ones that got repoed are and as soon as the market goes back up they will be over priced again (as all south florida houses are). ya people cant pay their bills and the mortgages, lots here dont have their citizenship (on work visa or permanent resident) so they cant get like government help really or its hard to get help when you cant pay your property taxes or mortgage. not to mention that would mess up their whole trying to get a citizenship thing cuz they have a financial sponser who is suppose toi take care of them so the government doesnt have to.

    anyway im just yapping all i know is what hubby tells me, i let him take care of that bs. :)