House Flipping? Do You Do It?

Hey So I have been doing lots of online marketing and what not doing pretty well but I've always wanted to flip houses and make some good dough from it. Yes I am only 20 and a college drop out. I was wondering if anyone on here does it and what is there to expect when doing it. I was thinking of getting some houses back home in Detroit because they are so dang cheap. And I was also thinking of getting some prime real estate in Florida while the housing market is still on the lower end. What do you guys think?

I've never flipped any houses but have flipped many cars.

Yes, I flip houses all the time.

That's actually a really sick house. what cars have you rolled BestInDaBiz?

kid don't try jump higher then you can

How does that business work?

You should look up a guy on Youtube by the name of "Chris Bruce".

AnthonyCorleone said:

kid don't try jump higher then you can

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How are you ever going to get bigger and better if you don't try to surpassing the old?

MadBlackHatt said:

How does that business work?

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Basically you find a house that is super cheap for some reason, normally because it is trashed and foreclosed. So you fix it up and sell it and make some quick cash! Also you can do the same but rent the place out

unashamedfisch said:

Basically you find a house that is super cheap for some reason, normally because it is trashed and foreclosed. So you fix it up and sell it and make some quick cash! Also you can do the same but rent the place out

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Look up some real estate forums. Basically the best ROIs with a budget of someone your age would be to find decent homes around $50k-$70k, rent them at $1,000-$1,200 a month and you'll see your full investment back within 5-8 years plus you'll still own the property.

unashamedfisch said:

How are you ever going to get bigger and better if you don't try to surpassing the old?

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well you yang and you don't have money nor a knowledge in this industry if you wan a go big you should first try go small
and by small im not saying go to Detroit or Florida where's house market dead for a reason and not for an opportunity of flipping houses

you also should have at lease 200-300k of cash to get into this kind of stuff, you don't wan a get loan burn it and then stuck with a debt for the rest of your life
you should at lease do a dam good research to gain best knowledge and sometimes house repairs mans will tell you more voluble stuff then your real estate Realtor

but so far you in wrong direction specially with asking such a question in this forum
but I wish u best of luck and hope 1 day u might flip one house successfully and split your profit 50/50 with IRS

I'd second the advice to review the materials on 'creative' real estate sites and courses to get your flipping bearings. Also look for quality writers in this area like Bronchick, LeGrand, Gatten and the like. Bronchick and other investors who are also attorneys are extra helpful, as they walk people through the legal issues and how to structure the paperwork to stay safe.

You don't need '200-300k of cash' unless you are structuring a conventional deal--there are about 5-6 ways to get a house signed up and flipped without money from your pocket, or signing personally on the financing (lease options, assumptions, subject-tos, equity sharing, hard money, seller financing, etc). Basically, get as familiar with creonline.com on the RE side, as you may be with BHW on the IM side.

I second Zebrahat. Internet technology and building businesses are my first passion, my second is real estate - and where many "next door millionaires" are made. You can lose your shirt if you don't know what you're doing, however. Read CREonline & BiggerPockets, they are the two best sites out there to learn about real estate investing. Play smart, don't put in money you don't have to lose, and realize it's not a 'get rich quick' game. You'll be in it for the long haul.

Cheers

Wow thanks a lot guys! There was just like multiple posts of some good knowledgeable nuggets. I will definitely check out the forums and what not and do more than enough research before I actually try to go out one day a just flip a house.

Have an electrical contracting business, sometimes do mechanical (HVAC aka heating and air), so occasionally I interact with house flippers here and there. I cannot say that I have much experience but here are a few observations that I picked up.

I actually did a reality TV show which was a bar renovation show knock off (Which didn't get picked up as of yet from Jan of 14) and all that DIY easy as pie stuff isn't if you have no skills or money.

If you can pick up one overall skill, carpentry is the best overall to have to do some type of house renovations.

Be wary of any house missing its copper, especially the plumbing for the flooding and mold, cause they almost never are considerate enough to turn off the main when hacking it out. Watch out for the electrical being hacked out as well. They did not save off with wire nuts where they couldn't get at, so you could have a shock hazard or a fire hazard. Same goes for heaters and a/c units and of course copper flashing on old houses for roofs and gutters.

Find reputable people to work with. I know you want to save money, but avoid crackheads, etc..... You get what you pay for. Vest most handymen as well. Good ones are rare. Depending on the jurisdiction, you can do your own electrical or plumbing or not. Some construction officials in the towns will allow you to do the work if you as a person own the house and not as a LLC. They really started cracking down on this in the last half a decade since the crash.

I forgot to add that a lot of older people, especially contractors, etc... run into problems and such. They have tax issues be it property, income, or sales and need money and have land or buildings and can work something out such as a lease purchase, etc.... I usually run into about three or four of these scenarios a year. Not exactly the textbook examples everyone thinks about in the beginning of the thread.

Finally, if you can get a bare piece of ground and want something on it, pre-fabricated homes have come a long way. Better known as modular, they truly are a house in a box with most of the assembly done for you. Fast tracked for sure and am sure you can obtain a loan on it too.

Yep thanks for the general guidelines guys. Me and my dad can do most of everything to fix the house unless there are major problems and if so I would not buy. And yeah taxes are always tricky and can get you if you havent solved for them and don't have the cash for em

I may have the answer to this question...

Don't flip. If all you're really good at is marketing, there may be a sub-niche even more profitable for you if renovations isn't your thing.

Hmm, I like how you think! I'm just good at making money I guess. So if it is profitable I will find a way and do it

SinfulPromotions said:

I may have the answer to this question...

Don't flip. If all you're really good at is marketing, there may be a sub-niche even more profitable for you if renovations isn't your thing.

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This. Like I said in my earlier post, there are WAY more profitable ways to earn money in real estate and renting small-mid size homes is the best way. Also, you should always choose a house where you can make your full investment back in 5-8 years.