How was your experience in flipping/real estate?

there are only cons to flipping a house unless you do it right first thing you have to do is get the idea of flipping out of your thought process you have to belive in it as an investment opportunity. check out

In the current market, flipping ain’t so good. You aren’t going to be able to sell right away. It’s a buyer’s market.

There may be some good deals due to all the foreclosures but you’ll have to be able to sit on them till the market turns.

Also, all the really good deals with the nice homes and low prices are bought up by people with connections.

If you watch the various house flipping shows on TLC, you’ll notice a lot of those people are not doing so well.

First, you’ll get never the information you need to know from any forum, including this one. There are deals in every market, but recognizing them and understanding market values and market trends is critical.

Just as in any true profession. you’ll have to read, attend seminars, read some more, research the Internet, etc.

Second, it aint as easy is they make it out to be on TV. Watching people fail doesn’t make good TV, which is why most everyone on those shows looks to be making money. But, they usually fail to add in a lot a actual costs which you’ll have in a flip.

Next, you should have money (contractors like to get paid), a good real estate attorney, an competent, skilled agent, a title company or closing attorney, lender and many other affiliates to help you succeed. Typical investor loans in our state are requiring a minimum of 20% down if you have very good credit and low debt/income ratios. If you don’t have both, you’ll need to find very motivated sellers who are willing to let you purchase creatively (”subject to”, “lease option”, “owner carry”, etc.)

I have flipped a number of homes and I know the market well, Even so, markets can change rapidly and every now and then I buy a dog and lose a little.

Bottom line…..if you’re serious, you need to do a lot of learning and start getting your team of professionals together.

As far as finding properties goes, if you don’t plan to be a full time investor, call one of your local investors (or several) and see if they have any properties that they’ll wholesale to you. Call the “We Buy Houses” ads or find out where your local REIA (Real Estate Investors Association) meets and attend a meeting. Most investors attract more properties than they can logistically handle with their marketing campaigns and will gladly flip one to you for a few thousand dollars profit and let you make the “lion’s share” of the profit for your hard work.

Get pre-approved or have cash on hand, though. Most investors will want you to be able to close in less than 15 days.

As indicated, you’ve got a LOT to learn before you make this leap. However, here’s the basic formula that’s served thousands of rehab investors well. Never, never, never (did I mention, never?) pay more than 70% of Full Market Value (as determined by comps, not list prices) MINUS any needed repairs to reach your Maximum Allowable Offer (MAO).

Got it?

FMV X .70 – repairs = MAO

And you never want to pay MAO if possible. Learn to negotiate. Especially if you’re not doing the work yourself!
Learn it, know it, live it. If you stray from this formula, you’re going to a seminar…at the school of HARD KNOCKS!

There’s a ton of books/cd’s/dvd’s out there from every real estate “GURU” on the planet. Ron LeGrand’s stuff is a very good intro into the business but for a free forum FULL of good information join The Creative Investor forums at

Please keep in mind that HGTV makes it look easy. And what they skip over is the most important part….You don’t make money in Real Estate when you sell, you make it when you buy!

HTH

Check out this post, too.

Flipping in a down market is perfectly feasible, you just have to know what you’re doing.