buying then reselling

Discussion in 'Buying & Selling Real Estate' started by 2times, May 30, 2014.

  1. 2times

    2times Member

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    Have any of you Bought a crappy house, fixed it up to look all brand new and spotless, then reselling it for double the price, if not, then more?

    I have always wondered if this is a great way to make a living. I mean if you really know what you are doing and know how to fix up a house and have a great crew to help you through it all, then yeah, right??

    I believe this is called flipping the real estate market. But i am not 100% sure that is what this is called.

    But could you really make a living out of doing this kind of stuff in lets say, California?
     
  2. JackHark

    JackHark Active Member

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    It is called flipping you are right. It isn't as easy as you make it out to be because of many factors including; market fluctuations, the buying market, the cost of the place, cost to renovate, which area you buy in etc.

    You can make a living off this, but this is one of those "you need money to make money" situations.
     
  3. crimsonghost747

    crimsonghost747 Senior Investor

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    It's a risky business if you plan to make a living with it. Sometimes you might not be able to sell, some unknown problems can occur etc. I would not want to do this as a living, it can make for significant secondary income though.

    It also really depends on how you can or are willing to do yourself, and how much reparations would be done by people you pay to do them.
     
  4. hnatalieann

    hnatalieann Guest

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    My husband really wants to get into this. He's a general contractor and does it all. That alone can work in our favor as it will save on costs. He's currently looking for the right house to start with.
     
  5. 2times

    2times Member

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    Okay thanks everyone for the thoughts on my post. I'm not sure if I would like to get into this rigt away, I need to read up a lot more on the location that I would like to have this flipping.
     
  6. 2times

    2times Member

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    I've decided that this is not the thing for me. Or, at least not yet. There are too many things to think about and plan when you are going into this type of career.
     
  7. alexisfinch24

    alexisfinch24 Well-Known Member

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    This is an awesome way to make a living. So long as you do your homework and, know your market and, design your product to cater to whatever market your selling too.
     
  8. Thejamal

    Thejamal Guest

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    This would be an incredibly stressful way to make a living, especially in the housing market. You need to have access to a good crew that you trust to get the job done in a quick amount of time and a ton of money beforehand to even start in this business. On top of buying the actual property, most of the renovations needed to put it on the market cost upwards of $40k. Also, you need to be pretty lucky to find a good property where you can actually flip it for an increased price where people want to live.

    So, while it might seem like an easy way to make a living, it requires a TON of luck, money and stress that goes into being successful with flipping houses.
     
  9. ami560

    ami560 Member

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    Usually, flippers work off of foreclosures that are going to auction, which means that there are a few unique aspects to this type of business. First is that many of the prices are very low, which means you won't be the only one buying and so you will have competition. Moreover, some auctions are a "no inspection" sort of deal. You bid on the house blind as you can't inspect any of the interior. Of course, there are fixer-uppers that are available through traditional foreclosure sales, estate sales, or just from an owner, but these can be more expensive. Then, of course, is the work needed to make the house desirable. If you have the know-how to fix a house, then it might work, but otherwise you'll have to pay for contractors and that can be messy and expensive. Plus, no matter what you do, there are certain issues (gas work as well as some electrical work) that has to be dealt by professionals. Then there are permits to deal with as well as building codes. Depending on the age or the history of the house, there could be some nasty surprises in the infrastructure of the house as well. For example, my neighbor has been working on his house for YEARS, and he isn't even planning on selling, just making it better. Plus, even after building you then need to actually sell the house, which can take time depending on how much you want for it. You really have to do your research before getting into this type of work, and even then it is very much a gamble. But, I hear it can be very rewarding as well, but again it is very volatile.
     
  10. tspires2

    tspires2 Member

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    It can be an amazing business, or it can be an epic fail. Be very care when starting this type of business. We tried it once on a single family home we only paid $1000 for and it was $40K easy. By the time every thing was said and done we had $45K into the house. If some thing could go wrong it did! We re-plumbed, re-wired, new A/C, new kitchen, new flooring throughout, mold in the walls and the floor had to have it professionally cleaned and mold certified then had to replace some walls and flooring that just wasn't salvageable. Long 4 month long story short we did sell the house for $47K which was the high end of what it was worth, however it took another 2 months to do so. When you have a $2k profit in a 6 month timeframe the money doesn't look so good anymore!

    Don't get me wrong I know several people who do very well with business. Choose your purchase wisely cheaper is not always better!
     

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