OK here are my newbie questions

6 Replies

What is Flipping? Is it the same as buying a reasonable house/foreclosure, fixing it up and selling it for more than what you paid for it?

Is it hard to get foreclosures considering that everyone is in there trying to get the same thing?

Can flipping be just as risky as buying a regular home, fix it up and rent it. What if you fix it up and you have a hard time renting? Where do you find renters in a decent amount of time considering while you're fixing up you still have mortgage, gas/electric, water, and home owner's insurance MONTHLY?

Victoria - there are several interpretations of flipping. Yes, it can be buying a property cheap, fixing it, and then selling it for a profit. Others will enter into a contract to buy a property and then find a new buyer and "flip" the property to them before the deal closes.

There is certainly competition out there to pick up foreclosures. In California foreclosures are selling for just as much as other homes, often times.

Your concern about finding renters is valid. Many people underestimate the difficulty in finding renters, and often lose their property because they did not set aside enough money to keep the bills paid. You just need to have a good plan and budget properly.

Hope this helps. :mrgreen:

Originally posted by "biggerpo":
Victoria - there are several interpretations of flipping. Yes, it can be buying a property cheap, fixing it, and then selling it for a profit. Others will enter into a contract to buy a property and then find a new buyer and "flip" the property to them before the deal closes.

There is certainly competition out there to pick up foreclosures. In California foreclosures are selling for just as much as other homes, often times.

Your concern about finding renters is valid. Many people underestimate the difficulty in finding renters, and often lose their property because they did not set aside enough money to keep the bills paid. You just need to have a good plan and budget properly.

Hope this helps. :mrgreen:

Oh, I didn't know you can do that w/ flipping, that's interesting and risky too, thanks for the info

Your point about finding renters biggerpo is interesting. I'm guessing this is a problem that many people have. It is so easy to underestimate costs when it comes to investing.

I think people need to have some set of cardinal rules before buying property for income purposes.

Hello,
You said, "Others will enter into a contract to buy a property and then find a new buyer and "flip" the property to them before the deal closes. "

How exactly is this done?

Do I need 2 contracts, one for the owner and one for my buyer at a higher price? Are they the same type of contract (agreement to purchase real estate)?

Do we all go to the closing at the title office together?

When do we get paid? That day or is it mailed to us?

Thanks for the help.

cpvon777

I bought a 4 unit bldng in Covington, KY. It's next to main commercial street in town, bus stop, foot traffic, so I had people asking about renting an apartment while doing remodelling. In short - the location affords interested renters.

My main problem was no interested property managers for this size of property. Covington, KY is across Ohio river from Cincinnati, OH, however OH property managers aren't licensed to manage in KY.
Calling local property managers from the Yellow Pages didn't help :(

I bought a 4 unit bldng in Covington, KY. It's next to main commercial street in town, bus stop, foot traffic, so I had people asking about renting an apartment while doing remodelling. In short - the location affords interested renters.

My main problem was no interested property managers for this size of property. Covington, KY is across Ohio river from Cincinnati, OH, however OH property managers aren't licensed to manage in KY.
Calling local property managers from the Yellow Pages didn't help :(

Because I live out of this area it was a little unnerving.

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