Anyone here involved in this business? I am getting ready to graduate here in the spring and was possibly looking into the idea of investing in Real Estate. My questions are; how should I get started? What area is best for beginners?
I've heard that flipping homes is relatively low risk and good area for beginners to start but wanted to hear from people who are involved in real estate and what you recommend.
Any advice would be greatly appreciated.
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Anyone here involved in this business? I am getting ready to graduate here in the spring and was possibly looking into the idea of investing in Real Estate. My questions are; how should I get started? What area is best for beginners?
I've heard that flipping homes is relatively low risk and good area for beginners to start but wanted to hear from people who are involved in real estate and what you recommend.
Research the market you are buying in. It is key to flip the house in as short of a time as possible. At the beginning, it helps tremendously if you are the one putting in the labor to fix up the property. Hangning sheetrock, removing plants, landscaping, painting, laying tile floors, etc -- this is all relatively easy manual labor, and if you can do it yourself, you will save plenty on renovation costs.
I am not involved in the business but was about to start. The housing market around me is pitiful right now, so I decided against it. It would have been a weekend venture for me and a friend, not our full-time jobs.
My first project I was about to start was a house for $90k in Gulfport, MS, that was damaged by Hurricane Katrina. The owners had gutted the walls (removed the wet sheetrock), pulled up the floors, and ran new electricity throughout the house. All that was left for me and my buddy was to hang the bottom 4ft of sheetrock, install flooring (tile floors are relatively cheap and easy to install), and install the basics in the kitchen (countertops and shower/tub). The house sold for $90k, the buyer did these things I mentioned above, and he flipped it for $130k from what I heard. Oh well, I missed out.
GL with your decision...
Research the market you are buying in. It is key to flip the house in as short of a time as possible. At the beginning, it helps tremendously if you are the one putting in the labor to fix up the property. Hangning sheetrock, removing plants, landscaping, painting, laying tile floors, etc -- this is all relatively easy manual labor, and if you can do it yourself, you will save plenty on renovation costs.
I am not involved in the business but was about to start. The housing market around me is pitiful right now, so I decided against it. It would have been a weekend venture for me and a friend, not our full-time jobs.
My first project I was about to start was a house for $90k in Gulfport, MS, that was damaged by Hurricane Katrina. The owners had gutted the walls (removed the wet sheetrock), pulled up the floors, and ran new electricity throughout the house. All that was left for me and my buddy was to hang the bottom 4ft of sheetrock, install flooring (tile floors are relatively cheap and easy to install), and install the basics in the kitchen (countertops and shower/tub). The house sold for $90k, the buyer did these things I mentioned above, and he flipped it for $130k from what I heard. Oh well, I missed out.
Research the market you are buying in. It is key to flip the house in as short of a time as possible. At the beginning, it helps tremendously if you are the one putting in the labor to fix up the property. Hangning sheetrock, removing plants, landscaping, painting, laying tile floors, etc -- this is all relatively easy manual labor, and if you can do it yourself, you will save plenty on renovation costs.
I am not involved in the business but was about to start. The housing market around me is pitiful right now, so I decided against it. It would have been a weekend venture for me and a friend, not our full-time jobs.
My first project I was about to start was a house for $90k in Gulfport, MS, that was damaged by Hurricane Katrina. The owners had gutted the walls (removed the wet sheetrock), pulled up the floors, and ran new electricity throughout the house. All that was left for me and my buddy was to hang the bottom 4ft of sheetrock, install flooring (tile floors are relatively cheap and easy to install), and install the basics in the kitchen (countertops and shower/tub). The house sold for $90k, the buyer did these things I mentioned above, and he flipped it for $130k from what I heard. Oh well, I missed out.
GL with your decision...
Great, thanks for the advice once again.
Quote Originally Posted by Blue_Chip:
Research the market you are buying in. It is key to flip the house in as short of a time as possible. At the beginning, it helps tremendously if you are the one putting in the labor to fix up the property. Hangning sheetrock, removing plants, landscaping, painting, laying tile floors, etc -- this is all relatively easy manual labor, and if you can do it yourself, you will save plenty on renovation costs.
I am not involved in the business but was about to start. The housing market around me is pitiful right now, so I decided against it. It would have been a weekend venture for me and a friend, not our full-time jobs.
My first project I was about to start was a house for $90k in Gulfport, MS, that was damaged by Hurricane Katrina. The owners had gutted the walls (removed the wet sheetrock), pulled up the floors, and ran new electricity throughout the house. All that was left for me and my buddy was to hang the bottom 4ft of sheetrock, install flooring (tile floors are relatively cheap and easy to install), and install the basics in the kitchen (countertops and shower/tub). The house sold for $90k, the buyer did these things I mentioned above, and he flipped it for $130k from what I heard. Oh well, I missed out.
I have been in investment banking in the past and found a nice niche in investment real estate. I have found that your best deals right now are in Mississippi however, beware of flipping. that market is all renters...Don't forget that over 70,000 homes were damaged or destroyed after Katrina and at the time they were 45% renters, a staggering number. That number has increased with Katrina hurting people's credit ratings, forcing them to rent. I have 2 homes in Bay St. Louis and refer people to a builder that I know...The homes are about $125,000...Out of pocket is about $8500 total and the cash flow is pretty much break even at $1200 per month in operating expenses and the same for the rental. Of course, more down payment means better cash flow. There are also some extremely good tax incentives for people needing write-offs. It's called the Go Zone Bonus Depreciation. Other than this market, it is very risky to go in and flip something. The national numbers are WAY down and it's only going to get worse once the banks release their portfolios of REO's (foreclosures) at 10-15 cents on the dollar. Unfortunately the only ones with access to them are deep pocket investors or REIT's. I love real estate but there is a lot of due diligence involved.
I have been in investment banking in the past and found a nice niche in investment real estate. I have found that your best deals right now are in Mississippi however, beware of flipping. that market is all renters...Don't forget that over 70,000 homes were damaged or destroyed after Katrina and at the time they were 45% renters, a staggering number. That number has increased with Katrina hurting people's credit ratings, forcing them to rent. I have 2 homes in Bay St. Louis and refer people to a builder that I know...The homes are about $125,000...Out of pocket is about $8500 total and the cash flow is pretty much break even at $1200 per month in operating expenses and the same for the rental. Of course, more down payment means better cash flow. There are also some extremely good tax incentives for people needing write-offs. It's called the Go Zone Bonus Depreciation. Other than this market, it is very risky to go in and flip something. The national numbers are WAY down and it's only going to get worse once the banks release their portfolios of REO's (foreclosures) at 10-15 cents on the dollar. Unfortunately the only ones with access to them are deep pocket investors or REIT's. I love real estate but there is a lot of due diligence involved.
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