OT: Flipping Houses

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Date: 10 Dec 23:34:10
From: Tanya AKA MissT74
Subject: OT: Flipping Houses

Is there anyone here that flip houses such as seen on "Flip That House" on TLC?
I've been watching these shows with interest and it seems the biggest problems
are staying within the projected budget of repairs, and then having reliable
contractors.

If you're a flipper, what are the pros/cons of being such?

T

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Date: 10 Dec 2006 20:21:40
From: Tad Perry
Subject: Re: Flipping Houses

"Tanya AKA MissT74" <43084303@recpoker.com > wrote in message
news:1165793650$919322@recpoker.com...
>
> Is there anyone here that flip houses such as seen on "Flip That House" on
TLC?
> I've been watching these shows with interest and it seems the biggest
problems
> are staying within the projected budget of repairs, and then having
reliable
> contractors.

If you're not going to use paid contractors, you won't make anything worth
your time flipping houses. The best use of this market is to keep yourself
employed *as* a contractor by flipping houses. If you can't do those repairs
yourself, don't bother. Also remember the media is touting flipping houses
as a "get rich quick scheme" not unlike poker.

Throw in the fact that market is far more competive now that even the Tanya
AKA MissT74's of the world have taken interest, and it's easy to see why
cheap houses worth flipping are getting harder to find.

tvp

Date: 11 Dec
From: The Fred
Subject: Re: Flipping Houses

In an area hotter than an Asians womans pussy and asshole,
you have got to figure out something that is different from
what the mass of idiots are doing-
Alot of people do that but they figure out something that
is stupid but think it will be great just because it's
different. Don't do that either.

I'm talking about shit like buying a certain type of
house that doesn't sell in your area that can easily and
inexpensively be converted into something that sells fast
and quick in your area.

On Dec 10 2006 10:22 PM, Tad Perry wrote:
> If you're not going to use paid contractors, you won't
> make anything worth
> your time flipping houses. The best use of this market is
> to keep yourself
> employed *as* a contractor by flipping houses. If you
> can't do those repairs
> yourself, don't bother. Also remember the media is touting
> flipping houses
> as a "get rich quick scheme" not unlike poker.
>
> Throw in the fact that market is far more competive now
> that even the Tanya
> AKA MissT74's of the world have taken interest, and it's
> easy to see why
> cheap houses worth flipping are getting harder to find.
>
> tvp

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Date: 10 Dec 2006 20:07:14
From: ZRat
Subject: Re: OT: Flipping Houses

Date: 10 Dec 2006 22:42:42
From: Schmedley
Subject: Re: Flipping Houses

"Tanya AKA MissT74" <43084303@recpoker.com > wrote in message
news:1165793650$919322@recpoker.com...
>
> Is there anyone here that flip houses such as seen on "Flip That House" on
TLC?
> I've been watching these shows with interest and it seems the biggest
problems
> are staying within the projected budget of repairs, and then having
reliable
> contractors.
>
> If you're a flipper, what are the pros/cons of being such?
>
> T
>
>
The one time I watched one of these shows, they were featuring a fire
damaged 3 BR shithole in a nasty looking neighborhood. In my area, probably
75K purchase, sell for $140k, and very difficult to make any money. Their
price was over $500k as-is and they sold it for over $750k. So I guess the
answer to yours is Location, Location, etc.

Date: 11 Dec
From: The Fred
Subject: Re: Flipping Houses

Absolutely, it is very area specific, people read newsweek
or whatever it is and think the national situation applies
to their area. National averages don't tell you shit about
where YOU are.
YOU have got to KNOW where YOU ARE and WHAT IS GOING ON.

On Dec 10 2006 9:41 PM, Schmedley wrote:
> The one time I watched one of these shows, they were
> featuring a fire
> damaged 3 BR shithole in a nasty looking neighborhood. In
> my area, probably
> 75K purchase, sell for $140k, and very difficult to make
> any money. Their
> price was over $500k as-is and they sold it for over
> $750k. So I guess the
> answer to yours is Location, Location, etc.

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Date: 11 Dec 2006 03:04:36
From: Lou Krieger
Subject: Re: Flipping Houses

You gotta be very, very careful in a buyer's market. The time to flip
profitably is when prices are escalating and selling is easy. Every day you
have a house unsold and on the market is a day you're losing money, and too
long a time to sell can eradicate the value of any improvements you sweated
to make.

"Tanya AKA MissT74" <43084303@recpoker.com > wrote in message
news:1165793650$919322@recpoker.com...
>
> Is there anyone here that flip houses such as seen on "Flip That House" on
> TLC?
> I've been watching these shows with interest and it seems the biggest
> problems
> are staying within the projected budget of repairs, and then having
> reliable
> contractors.
>
> If you're a flipper, what are the pros/cons of being such?
>
> T
>
> _______________________________________________________________
> The Largest Online Poker Community - http://www.recpoker.com

Date: 11 Dec
From: arlo payne
Subject: Re: OT: Flipping Houses

On Dec 10 2006 4:34 PM, Tanya AKA MissT74 wrote:

>
> Is there anyone here that flip houses such as seen on "Flip That House" on
> TLC?
> I've been watching these shows with interest and it seems the biggest problems
> are staying within the projected budget of repairs, and then having reliable
> contractors.
>
> If you're a flipper, what are the pros/cons of being such?
>

Unless you can do most of the work it is not worth it these days.
At one point in time you could build for $50 a foot. Those days are long gone.
Concrete is around $6 per foot. Supplies have doubled. Hell dry wall is over
$10 a sheet cheap siding is over $15 a sheet.
The market is out of wack in most states and in AZ the forecast states houses
are 28% overpriced.

All of housiing went to hell when everyone got this great idea they would make
big bucks by tirning over houses every few years.

In general this country went nuts. People should by a house for a home not an
investment. Many people are about to get screwed due to greed and I for one
will love it.
Anyway bottomline in the market today if you cant do the work you are likely
going to take it in the shorts.

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Date: 11 Dec
From: The Fred
Subject: Re: OT: Flipping Houses

Greed is never profitable to a human being in the long run,
not in Real Estate. Being greedy in real estate will make
you broke and if you manage to become a big greedy mogul
asshole it can get you killed.

You're right also about the market in most areas-
the masses got scared, stocks "baaaa. aaa... ddd" so
everyone ran screaming with hands in the air over to real
estate and sent the prices into the sky- wow that is great,
they thought, this is going to go on forever..
Well, oops.

Try and do the work yourself and you'll be fucking a
mattress with no woman on it. It doesn't make sense. You
stand there working like an idiot while holding costs eat
you alive and you also are tying up valuable capital and/or
credit that could be doing three more deals while you're
playing with your own balls hanging drywall.
What's more you'll not have the time to find the GOOD deals.

On Dec 10 2006 8:37 PM, arlo payne wrote:
>
> Unless you can do most of the work it is not worth it
> these days.
> At one point in time you could build for $50 a foot.
> Those days are long gone.
> Concrete is around $6 per foot. Supplies have doubled.
> Hell dry wall is over
> $10 a sheet cheap siding is over $15 a sheet.
> The market is out of wack in most states and in AZ the
> forecast states houses
> are 28% overpriced.
>
> All of housiing went to hell when everyone got this great
> idea they would make
> big bucks by tirning over houses every few years.
>
> In general this country went nuts. People should by a
> house for a home not an
> investment. Many people are about to get screwed due to
> greed and I for one
> will love it.
> Anyway bottomline in the market today if you cant do the
> work you are likely
> going to take it in the shorts.

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Date: 11 Dec
From: Big Ed Jr
Subject: Re: OT: Flipping Houses

The flip market in AZ, Fla and Vegas is slowing down. I'd look into Lousiana,
Alabama and Mississippi as sad as it may be.

On Dec 10 2006 6:34 PM, Tanya AKA MissT74 wrote:

>
> Is there anyone here that flip houses such as seen on "Flip That House" on
> TLC?
> I've been watching these shows with interest and it seems the biggest problems
> are staying within the projected budget of repairs, and then having reliable
> contractors.
>
> If you're a flipper, what are the pros/cons of being such?
>
> T

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Date: 11 Dec 2006 08:08:57
From: Will_gamble
Subject: Re: OT: Flipping Houses

On Dec 10 2006 7:27 PM, Big Ed Jr wrote:

> I'd look into Lousiana, Alabama and Mississippi as sad as it may be.
>

Lets see, the sun shines only in AZ, FL, and Vegas. You are totally
clueless.

Mississippi, now with air conditioning.

http://www.lakecaroline-ms.org/

This is where I live... It is a 850 acre lake and I pray that all the
world keeps thinking Mississippi and a horrible place to live...
Especially those that are to stupid not to realize that no matter where
you are from, it is special to you. That is why over 50% of the people in
this country live within 50 miles of where they were born.

See Rep nagel's comments.

Seems to me you are the backward one.

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Date: 11 Dec
From: Porsche_Dan
Subject: Re: OT: Flipping Houses

It's better if you keep the houses and rent them out.

Unless you and your husband have your real estate and contractors licences.

On Dec 10 2006 3:34 PM, Tanya AKA MissT74 wrote:

>
> Is there anyone here that flip houses such as seen on "Flip That House" on
> TLC?
> I've been watching these shows with interest and it seems the biggest problems
> are staying within the projected budget of repairs, and then having reliable
> contractors.
>
> If you're a flipper, what are the pros/cons of being such?
>
> T

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Date: 11 Dec
From: The Fred
Subject: Re: OT: Flipping Houses

What in gods name would the need RS and contractors licenses
for?
Sure, as a realtor you save some money but you still will
split he comission with another agents broker alot of the
time and of course you split with yours,
What on earth would they need the other license for?

You have to know what you're doing to flip
property- you have to be even more knowledgable to
successfully exist as a landlord who doesn't end up driving
off of a bridge some morning.

On Dec 10 2006 7:18 PM, Porsche_Dan wrote:

>
> It's better if you keep the houses and rent them out.
>
> Unless you and your husband have your real estate and
> contractors licences.
>
> On Dec 10 2006 3:34 PM, Tanya AKA MissT74 wrote:
>
> >
> > Is there anyone here that flip houses such as seen on
> > "Flip That House" on
> > TLC?
> > I've been watching these shows with interest and it
> > seems the biggest problems
> > are staying within the projected budget of repairs, and
> > then having reliable
> > contractors.
> >
> > If you're a flipper, what are the pros/cons of being
> > such?
> >
> > T
>
>

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Date: 11 Dec
From: Porsche_Dan
Subject: Re: OT: Flipping Houses

Speaking from experience? I know I am.

On Dec 11 2006 1:03 AM, The Fred wrote:

> What in gods name would the need RS and contractors licenses
> for?
> Sure, as a realtor you save some money but you still will
> split he comission with another agents broker alot of the
> time and of course you split with yours,
> What on earth would they need the other license for?
>
> You have to know what you're doing to flip
> property- you have to be even more knowledgable to
> successfully exist as a landlord who doesn't end up driving
> off of a bridge some morning.
>
> On Dec 10 2006 7:18 PM, Porsche_Dan wrote:
>
> >
> > It's better if you keep the houses and rent them out.
> >
> > Unless you and your husband have your real estate and
> > contractors licences.
> >
> > On Dec 10 2006 3:34 PM, Tanya AKA MissT74 wrote:
> >
> > >
> > > Is there anyone here that flip houses such as seen on
> > > "Flip That House" on
> > > TLC?
> > > I've been watching these shows with interest and it
> > > seems the biggest problems
> > > are staying within the projected budget of repairs, and
> > > then having reliable
> > > contractors.
> > >
> > > If you're a flipper, what are the pros/cons of being
> > > such?
> > >
> > > T
> >
> >
>
>

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Date: 14 Dec
From: The Fred
Subject: Re: OT: Flipping Houses

Why yes,
I do happen to be speaking from experience.
My father was a licensed contractor for over 30 years and I
was good friends with a realtor for a long time.. a realtor
who was renting from me.

You can have the contractors license and you still
have to go in for the permit and clear everything with the
inspectors. . . you can have your realtors license and make
a pittance of savings here and there but then you have to
find a way to avoid owing taxes on it and since it goes
through your broker it is out in the open for the world
(read: uncle sam) to see.. corp or no corp

Did I mention that with a realtor license
you've got to make more disclosures and be damned sure that
you can prove you did not take advantage of someone - oh
yes.. liability comes with credentials, imagine that.

Maybe your high priced attorney for the wealthy is playing
games with you wrapping you up in extra multi colored tape
for a fun time

On Dec 11 2006 3:11 AM, Porsche_Dan wrote:

>
> Speaking from experience? I know I am.
>
> On Dec 11 2006 1:03 AM, The Fred wrote:
>
> > What in gods name would the need RS and contractors
> > licenses
> > for?
> > Sure, as a realtor you save some money but you still
> > will
> > split he comission with another agents broker alot of
> > the
> > time and of course you split with yours,
> > What on earth would they need the other license for?
> >
> > You have to know what you're doing to flip
> > property- you have to be even more knowledgable to
> > successfully exist as a landlord who doesn't end up
> > driving
> > off of a bridge some morning.
> >
> > On Dec 10 2006 7:18 PM, Porsche_Dan wrote:
> >
> > >
> > > It's better if you keep the houses and rent them out.
> > >
> > > Unless you and your husband have your real estate and
> > > contractors licences.
> > >
> > > On Dec 10 2006 3:34 PM, Tanya AKA MissT74 wrote:
> > >
> > > >
> > > > Is there anyone here that flip houses such as seen
> > > > on
> > > > "Flip That House" on
> > > > TLC?
> > > > I've been watching these shows with interest and it
> > > > seems the biggest problems
> > > > are staying within the projected budget of repairs,
> > > > and
> > > > then having reliable
> > > > contractors.
> > > >
> > > > If you're a flipper, what are the pros/cons of being
> > > > such?
> > > >
> > > > T
> > >
> > >
> >
> >
>
>

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Date: 11 Dec 2006 01:17:35
From: Palooka
Subject: Re: Flipping Houses

Date: 10 Dec 2006 16:59:03
From: Monty_Burns
Subject: Re: OT: Flipping Houses

Date: 10 Dec 2006 23:15:58
From: ben carr
Subject: Re: OT: Flipping Houses

Chris H is a moron. He is totally wrong on the subject. If you do the
work yourself there are many problems that occur. There are several ways
to do it. Some just focus on one house in a upscale area. Some would
rather have several houses going at once in the poorer areas. There are
many many unforseen problems that cost money. Some uncommon ones I have
come across were the basement wall collapsing trapping a man inside the
trench he was digging to waterproof it and finding a dead body wrapped
in plastic in the corner of the attic. You must have a good supply of
money to fall back on in case you have a problem or have trouble
selling.

Date: 10 Dec 2006 21:23:32
From: pokerchimp
Subject: Re: OT: Flipping Houses

On Dec 10 2006 11:15 PM, ben carr wrote:

> Chris H is a moron. He is totally wrong on the subject. If you do the
> work yourself there are many problems that occur. There are several ways
> to do it. Some just focus on one house in a upscale area. Some would
> rather have several houses going at once in the poorer areas. There are
> many many unforseen problems that cost money. Some uncommon ones I have
> come across were the basement wall collapsing trapping a man inside the
> trench he was digging to waterproof it and finding a dead body wrapped
> in plastic in the corner of the attic.

That sounds interesting. Was it an unsolved mystery? Did you find out
who the personn was?

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Date: 11 Dec 2006 00:41:08
From: ben carr
Subject: Re: OT: Flipping Houses

The person in the bag was a woman who lived there 10 years before that
went missing. Her husband killed her. He died after that and the family
sold the house to us. It had a ton of junk in it so nobody even noticed
she was there until we were cleaning it out. She was literally headed to
the dumpster when a laborer of mine noticed something wasnt right. There
was a big investigation and it caused a looong delay in our rehab
process. Luckily it was one of 100 houses we did that summer so the
delay didnt hurt us too much.

Date: 10 Dec 2006 23:13:55
From: pokerchimp
Subject: Re: OT: Flipping Houses

Wow, one for the grandkids

On Dec 11 2006 12:41 AM, ben carr wrote:

> The person in the bag was a woman who lived there 10 years before that
> went missing. Her husband killed her. He died after that and the family
> sold the house to us. It had a ton of junk in it so nobody even noticed
> she was there until we were cleaning it out. She was literally headed to
> the dumpster when a laborer of mine noticed something wasnt right. There
> was a big investigation and it caused a looong delay in our rehab
> process. Luckily it was one of 100 houses we did that summer so the
> delay didnt hurt us too much.

thumbers on stars, dieseldyke on absolute/vegaspoker24/7

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Date: 12 Dec 2006 14:37:52
From: Tad Perry
Subject: Re: OT: Flipping Houses

"ben carr" <up-high@webtv.net > wrote in message
news:8358-457CDB7E-1005@storefull-3356.bay.webtv.net...
> Chris H is a moron.

Chris H may well be a moron. Hell, I'm convinced the lot of you are a bunch
of braindead idiots, but that's another story. (Something to do with driving
in our cars headlong off a cliff like a bunch of lemmings, with no regards
for the kids (future generations) in the back seat...)

Anyway, most of the people are saying the same thing and it's more or less
correct: You need to be someone who can do those repairs and do them well
and THEN you can think about making money in the house-flipping market.
There may be market factors which make it possible another way, but this is
how it gets done.

tvp

Date: 14 Dec
From: The Fred
Subject: Re: OT: Flipping Houses

I don't know about you calling every one else a moron.. not
when you're giving advice like that advice.

The difference is, you see, I could very easily
call everyone who is not me a moron and be right. I am THE.
See.

On Dec 12 2006 4:38 PM, Tad Perry wrote:

> Chris H may well be a moron. Hell, I'm convinced the lot
> of you are a bunch
> of braindead idiots, but that's another story. (Something
> to do with driving
> in our cars headlong off a cliff like a bunch of lemmings,
> with no regards
> for the kids (future generations) in the back seat...)
>
> Anyway, most of the people are saying the same thing and
> it's more or less
> correct: You need to be someone who can do those repairs
> and do them well
> and THEN you can think about making money in the
> house-flipping market.
> There may be market factors which make it possible another
> way, but this is
> how it gets done.
>
> tvp

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Date: 10 Dec 2006 17:19:30
From: your name
Subject: Re: Flipping Houses

"Tanya AKA MissT74" <43084303@recpoker.com > wrote in message
news:1165793650$919322@recpoker.com...
>
> Is there anyone here that flip houses such as seen on "Flip That House" on
> TLC?
> I've been watching these shows with interest and it seems the biggest
> problems
> are staying within the projected budget of repairs, and then having
> reliable
> contractors.
>
> If you're a flipper, what are the pros/cons of being such?

Just keep in mind....
Right now, in AZ, the fact that it has become very much more of a buyers
market than a sellers market as it has been. Its easy to buy, hard(er) to
sell.

Way to many people sitting on specs that they had hoped to turn for 40%+ and
now will be lucky to get what they have in them, out.( Maricopa, Queen Creek
are prime examples)
Its going to get worse, many people are sitting on No interest or negative
equity loans( ARMS) that are coming due. There is no escape other than sell
at a loss. They cant afford the payment at a reasonable rate.

Date: 10 Dec 2006 15:45:02
From: CincinnatiKid
Subject: Re: OT: Flipping Houses

On Dec 10 2006 6:34 PM, Tanya AKA MissT74 wrote:

> Is there anyone here that flip houses such as seen on "Flip That House" on
TLC?
> I've been watching these shows with interest and it seems the biggest
problems
> are staying within the projected budget of repairs, and then having reliable
> contractors.
>
> If you're a flipper, what are the pros/cons of being such?
>
> T

i have some friends who flip. that show on tv is ridiculous. you need to
do all the repairs to the houses on your own to really have a shot at
making any money.

Cons? not bein able to sell the fuckers.

There's a lot more money to be made in buying houses at sheriff sales,
fixin em up a tad, and renting them out...of course u have to deal with a
lot of derelicts.

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Date: 10 Dec 2006 15:41:52
From: Chris H. of Portland, OR
Subject: Re: Flipping Houses

Date: 11 Dec
From: The Fred
Subject: Re: Flipping Houses

That's the most ridiculous thing I have ever heard in my
life.

On Dec 10 2006 5:39 PM, Chris H. of Portland, OR wrote: >
> If you are a "flipper" who can do all the work yourself,
> you'll make money.
> If you hire out the work, you'll lose money. That's the
> formula.
>
> --
> Chris H. of Portland, Oregon
> Konichiwa, Bitches!
> <a href="http://www.youtube.com/watch?v=EUuIzw8X46Q" target="_blank">http://www.youtube.com/watch?v=EUuIzw8X46Q</a>

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Date: 11 Dec 14:14:43
From: JohnnyCoconuts
Subject: Re: OT: Flipping Houses

T:

As some have rightly said, the cons are that it is nowhere as easy as it looks.

You have to think about what you're doing and how you're going to make money,
and there are only two ways to do it:

1. Find something worth $X and pay somebody something less than $X for it, add
in repairs and hope that you get more than your cost and the cost of repairs and
carrying costs when you sell.

2. Pay what something is worth, and then do repairs and sell it for your price
+ cost of repairs + carrying costs + profit. (In other words, sell it for more
than it is intrinsically worth - such as to someone who just falls in love with
the place and "has to have it".)

Neither one of these is exactly the world's greatest business model. I'm not
saying the first one can't be done on a case-by-case basis, but what you're
really doing is charging for your labor, and maybe hoping you get a little bit
of payment for the aggravation savings that someone else now does not have to do
the repairs.

The real problem is that transaction costs (carrying costs and closing costs)
kill you. To get into and out of a $200,000 house, figure it's going to cost
you $17,000 to $20,000 (at least $10,000 for a sales commission and $7,000 to
$10,000 in closing costs), not including carrying costs. Yes, if this is your
business, these are deductible expenses, so take 20% - 25% off the cost to get
the true after tax dollar cost to you, but you still have to make a $15,000 -
$18,000 profit on a $200,000 house just to break even. If you want to make a
10% return, figure that you'll have to sell the house for $40,000 more than the
cost of the house + your cost of materials.

That's often tough to do.

Personally, I tried a couple and just about broke even, so we switched to buying
and holding rental houses. We're running 12% returns (unlevered) over the
past few years not counting appreciation, so levered that's pretty good. It's
not get rich overnight, but it's consistent and still significant returns.

Let me know if you want any more info.

Good luck.

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Date: 14 Dec
From: The Fred
Subject: Re: OT: Flipping Houses

See,
That is the problem with hotter markets..
ESPECIALLY with medium hot markets..

There are alot of medium hot markets around right now-
this is where you can not buy at an acceptable price, and
you also can't enjoy that instant skyhigh appreciation
people were use to for awhile there.

So many people think, oh look this house "is worth
$200,000" and I can buy it for $180,000.... and they're
happy. But as you've mentioned you've got to pay the
financing charges, holding costs and do a little upkeep or
repair.

The most I'd want to be in on a house "worth
$200,000" would be $140,000 and that is including any
repairs. And it is only "worth" what it can be sold for. You
will want to see a comparative analysis that shows what
nearby and similar homes have ACTUALLY SOLD FOR- RECENTLY-
normal people say oh look here is a house that is not as
nice for sale for $250,000 oh what a deal on this one for
$180,000 (NOT realising that the house for sale for $250,000
has been on the market for 99 years)

They end up doomed because they have no
idea of what they're doing, they don't put time in finding a
real deal, the get greedy, they bomb like explosive loaded
dead people falling off an airplane and then they fucking
complain.

The BALLS on some people.

On Dec 11 2006 8:14 AM, JohnnyCoconuts wrote:

>
> T:
>
> As some have rightly said, the cons are that it is nowhere
> as easy as it looks.
>
>
> You have to think about what you're doing and how you're
> going to make money,
> and there are only two ways to do it:
>
> 1. Find something worth $X and pay somebody something less
> than $X for it, add
> in repairs and hope that you get more than your cost and
> the cost of repairs and
> carrying costs when you sell.
>
> 2. Pay what something is worth, and then do repairs and
> sell it for your price
> + cost of repairs + carrying costs + profit. (In other
> words, sell it for more
> than it is intrinsically worth - such as to someone who
> just falls in love with
> the place and "has to have it".)
>
> Neither one of these is exactly the world's greatest
> business model. I'm not
> saying the first one can't be done on a case-by-case
> basis, but what you're
> really doing is charging for your labor, and maybe hoping
> you get a little bit
> of payment for the aggravation savings that someone else
> now does not have to do
> the repairs.
>
> The real problem is that transaction costs (carrying costs
> and closing costs)
> kill you. To get into and out of a $200,000 house, figure
> it's going to cost
> you $17,000 to $20,000 (at least $10,000 for a sales
> commission and $7,000 to
> $10,000 in closing costs), not including carrying costs.
> Yes, if this is your
> business, these are deductible expenses, so take 20% - 25%
> off the cost to get
> the true after tax dollar cost to you, but you still have
> to make a $15,000 -
> $18,000 profit on a $200,000 house just to break even. If
> you want to make a
> 10% return, figure that you'll have to sell the house for
> $40,000 more than the
> cost of the house + your cost of materials.
>
> That's often tough to do.
>
> Personally, I tried a couple and just about broke even, so
> we switched to buying
> and holding rental houses. We're running 12% returns
> (unlevered) over the
> past few years not counting appreciation, so levered
> that's pretty good. It's
> not get rich overnight, but it's consistent and still
> significant returns.
>
> Let me know if you want any more info.
>
> Good luck.

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Date: 11 Dec 2006 05:10:15
From:
Subject: Re: OT: Flipping Houses

Date: 14 Dec
From: The Fred
Subject: Re: OT: Flipping Houses

You: Make sense.
I'll add that you have got to put your time in finding a
deal, and it takes alot of time finding them, and when you
do find 'em you have to then work on GETTING the deal.

On Dec 11 2006 7:10 AM, abe.buckingham@gmail.com wrote:
> The pros are that you can make a lot of money and the cons
> are that
> it's very hard to do. It's always best if you have a
> strong grasp of
> every level of the flip from the purchase of the house to
> the
> renovations to the sale. You've really got to line up all
> three to
> ensure that you're going to be profitable and the majority
> of people
> simply do not have enough knowledge to do this. It's much
> like any
> buisness, you need to make sure that you get a good price
> for your base
> goods, ensure that enough value is being added to the
> product and then
> that you can sell it again when you're done for the price
> you want. I
> have known two successful flippers in my life, one was a
> realtor and
> the other was a renovation contractor and they both helped
> each other
> to make it all work. Both were extremely skilled in their
> field and
> were possibly the hardest working people I know which
> should tell you
> something.

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Date: 11 Dec 2006 13:16:51
From: ChrisBrown
Subject: Re: OT: Flipping Houses

On Dec 10 2006 5:34 PM, Tanya AKA MissT74 wrote:

> Is there anyone here that flip houses such as seen on "Flip That House" on
TLC?
> I've been watching these shows with interest and it seems the biggest
problems
> are staying within the projected budget of repairs, and then having reliable
> contractors.
>
> If you're a flipper, what are the pros/cons of being such?

Fell doesn't have enough work?

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Date: 12 Dec 2006 11:25:09
From: David Nicoson
Subject: Re: OT: Flipping Houses

I think it's important to figure out where the value is coming from.
Are you savy about getting the repairs done? Have better judgment in
your speculation?

Date: 14 Dec
From: The Fred
Subject: Re: OT: Flipping Houses

You:
Make sense.

On Dec 12 2006 1:25 PM, David Nicoson wrote:

> I think it's important to figure out where the value is
> coming from.
> Are you savy about getting the repairs done? Have better
> judgment in
> your speculation?

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Date: 14 Dec 2006 06:39:45
From: Chandler
Subject: Re: OT: Flipping Houses

Tanya AKA MissT74 wrote:
> Is there anyone here that flip houses such as seen on "Flip That House" on TLC?
> I've been watching these shows with interest and it seems the biggest problems
> are staying within the projected budget of repairs, and then having reliable
> contractors.
>
> If you're a flipper, what are the pros/cons of being such?
>
> T
>

I don't flip, but have worked in similar field for quite a while.
There are several things you should be concerned with.

Primary concern should be market. The reason there are so many of
these shows is that the market for some time was pretty frenzied. Any
yayhoo who could get financing and complete a renovation made money
because the market made it hard for them not to make money. Can you
make a buck in the current market conditions in your locale?

Do you have contacts that could help you find undervalued properties?
OK, the market has changed. Every property isn't automatically worth
10% more 6 months after you bought it. You need to find properties
that are undervalued. You need to find a deal to make money. Realtors
and brokers, and those with solid relationships with realtors and
brokers often snap up deals before or the moment they become available
on the MLS.

Do you have skills, knowledge or contacts that are suited to renovation
projects.? Do you understand a building's physical systems and
construction? Do you have trade skills that you could apply to the
project? Sweat equity helps keep costs down. Do you have
relationships with competent and trusted contractors? Do you have the
skills and experience to realistically estimate the costs of a project
quickly? Do you have design skills that will help you make a saleable
project and stay within budget?

Money: Do you have the money and can you get suitable financing? Is
the risk (and their is risk) worth the reward? Go back to first
paragraph. You can take losses. You can put your sweat and blood into
a project for months and not make a dime. It is possible.

Bottom line: You need to see value where the seller and other buyers
don't. You need to capitalize on value where the seller and other
buyers can't. You have to get there first. The market has to be good
enough to allow a profit. You need some ability.

Chandler

Date: 14 Dec 2006 03:40:07
From:
Subject: Re: OT: Flipping Houses

What ever happened to just getting an education and a real job?

Everyone is looking for the scheme to make a fortune now.

Date: 14 Dec 16:20:42
From: Tanya AKA MissT74
Subject: Re: OT: Flipping Houses

On Dec 14 2006 4:40 AM, Skate1240@aol.com wrote:

> What ever happened to just getting an education and a real job?
>
> Everyone is looking for the scheme to make a fortune now.

I have a real job, thanks.

I was just asking opinions as I had been watching a marathon of Flip That House
when I posted the message.

Why does it have to be a scheme to make a fortune, why can't it be "....looking
for something that will be a success and make a fortune"?

Anyways, LOADS of great advice on this thread, which is exactly what I was
looking for and I will not be flipping houses anytime soon. LOL

T

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Date: 16 Dec 10:18:50
From: The Fred
Subject: Re: OT: Flipping Houses

Be a capitalist or work for one.
Work for a capitalist or be one.

On Dec 14 2006 5:40 AM, Skate1240@aol.com wrote:

> What ever happened to just getting an education and a real
> job?
>
> Everyone is looking for the scheme to make a fortune now.

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