Flipping houses..?

[Dokie]

This is something my DAD has always wanted me and my brother to do but we never got a chance to do it. im 23 my brother is 21. we dont know alot about the whole buying and selling market, loans, contracts, and all that good stuff.

anyone have any experinace in this at all? i would like to flip houses full time me and my brother and maybe acouple "crew" members. is it possiple to do this and make a fairly comfortable living? we will have around 30k of our own money to start with.

[pjb2u]

I have experience in Ronnovating property, only a little tho, as i became a website designer instead, where are you from?

[ltressel]

Dokie,

I am an experience real estate investor. My operation is in Texas and Ohio. I've flipped houses in Vegas 5x before it turned sour. I currently hold 20 properties some are cash cows and some I rehabbed for profits and currently on lease to own.

If you need any help PM me. I'm willing to show you the ropes. You may not even really need your 30K once I show you how.


LT

[Dokie]

I am from Ky.

LT,
Flipping is not all I want to do, I would love just to make money in realestate in general. We dont have anymoney to start doing this just yet but we will in the next year or so, i just want to get all the information on all this i can to be ready to go into action. and any advice would be great! Im a pretty quick learner but unfortuantly dont know much about this stuff haha

[Wiles_RE]

flipping homes is suicide for the next two years...yes the market will get better but the best thing to do is RENT out the homes you buy at foreclosure auctions or REO properties. That way your tenants pay the mortgage and your sitting happy with 10 20 30 100 homes.

[ltressel]

My Ohio operation is in Dayton. I deal with a local savings and loan bank based in Columbus. I can check if they loan outside the state like Kentucky. The loan 85% percent of acquisition and rehab projects. For the most part- all you would need is appraisal fee. However, there are other rehab lenders out there that specializes in revitalizing neighborhoods.

I'm not too keen on how real estate market in KY but I can be certain that it's not any different than Ohio. With a little research I can pretty much study if a KY venture in real estate is profitable. If you are serious to learn I don't mind helping you. I probably will be in Ohio around December to visit my crew. I normally stay around the Cincinnati area.

Talk it over with your family-see if you all are in the same page.

LT

[kenny7461]

let me know how it goes

[Dokie]

what is an REO property.?

if i find a forclosure or an REO, and rent it out its there usually a little profit along with that or is it just sitting for the time being

[Wiles_RE]

well here is how you do it. I am pretty confident in telling you this BECAUSE your in KY. REO is Real Estate Owned. It's when a bank has a home that they already kicked the owners out of, they dont want to auction it so they give it to a local real estate agent. Hence, REO. Now, as far as making money. Lets keep the numbers simple. If I see a home that is for sale for 20,000 and it is worth 100,000. I would buy the home for 20,000 and make repairs for say 10,000.

Now I have an investment of 30,000 in an assessed 100,000 home. A bank will REFINANCE a home usually for 80% of the assessed value. That is they will give you a 80,000 loan on your home. 80,000 then you pay off the 30,000 and your left with 50,000. With 50,000 you get your second home. Repeat the process and your a millionaire within five years if you do it right.

[Dokie]

me and my brother have been wanting to do something like this for some time now.

the thing i am worried about is getting a loan. i do not have any real credit built up nor do i have any collatoral.

[Wiles_RE]

if you dont have the capital then right now is NOT the time to get into real estate. Now you have to have 100% of collateral to back up what you want from a bank. Bankers were lending to easily and got into trouble. Now you couldn't borrow a tissue to sneeze on, unless you have your own tissue...MAKES NO SENSE.

[ltressel]

Well said Wiles! Only the route to take this days is Rehab Loans not Refis. Refis will normally be harder due to the seasoning issues. Seasoning (for Dokie's fyi) is how long the property has been owned.

You are required to have at least owned the property 1 year before you can refinance. Also, you are required to have someone living in the house i.e. rented to qualify. Rehab doesn't put you through leaps and bounds to get your money out.

LT

[Wiles_RE]

In Virginia if you OWN the home in full, you do not have to have it for one year. They will simply refinance the home for you. Because that would be your first mortgage if you bought it through a line of credit. But you are right, if you get a home loan to begin with it is a lot harder.

[Dokie]

i can prob get around 60k for a small first time project. find a house that is forclosed or something, just to get my feet wet. one concern is loosing money. from what i was thinking you would have to be an idot to lose money buying a house undervalue, putting some money into it ,and selling it for more . am i correct.

[malumu200]

i can prob get around 60k for a small first time project. find a house that is forclosed or something, just to get my feet wet. one concern is loosing money. from what i was thinking you would have to be an idot to lose money buying a house undervalue, putting some money into it ,and selling it for more . am i correct.

Hey Dokie,

Have you done your research? something good to do, you were saying you have no experience, you might wanna check out real estate investing sites like creonline and reiclub. They give a lot of information on real estate investing and forms on with real estate investors. So checkout those sites, they might have some info you would need.