Starting with Flipping?

[Lennon Turner]

I'm a new investor, and I'm considering some strategies to get into real estate. I like the idea of flipping (if done well), but is it considerably more risky to start flipping houses given the current state of the economy?

[James Wise]

Originally posted by @Chris Salerno:

Originally posted by @James Wise:

Originally posted by @Chris Salerno:

Originally posted by @James Wise:

Originally posted by @Chris Salerno:

You have to be really careful when it comes to flips. I had a contractor that worked for me for a while and I thought he was trustworthy and stole 90K from me. You just really have to stay on top of the contractors and make sure the work is being down correctly. 

 Ouch how'd that go down? $90k down payment and he walked away from the job?

 The contractor stole 35k upfront and did nothing to fix the house. I now have to pay 45k to fix the home. I have had it for 8 months. So I am taking the time I had it and my losses total. 

I will still profit 18k off the deal. 

I picked a good deal but very upset about what happened.

Bummer. To be fair though only $35k was stolen from you. Not an insignificant amount but still a helluva lot better than $90k.

 Correct, In business you have to calculate all expenses. I did not want to spend an extra 45k to fix the home. So all of that would be considered stolen due to the fact he took the 35k from me. 

That's some head scratching math but whatever you say my man. Good luck to you.