If you're like most folks inspecting getting into real estate investing, you've probably got visions in your head of hooking up with a Realtor, paying pennies on the dollar for a cute minuscule dollhouse in a great neighborhood that needs a few repairs and a minuscule curb appeal, and flipping the house for a tidy profit- all while having fun getting paint on your overalls.
Flipping houses isn't a terrible way to get your feet wet in real estate, but it's not all fun and games and easy money, either. Unless you have a Lot of cash on hand and don't mind dealing with the many unknowns that come along with investing in real estate this way, flipping houses may not be for you.
Dollhouse Families
First of all: how are you going to find the property? Contrary to what you may think, you're not likely to find that exquisite minuscule rehabber house through a Realtor. Rehab properties listed on the Mls are often bank-owned, and regardless of their condition, the bank has an amount they must get to satisfy the foreclosed mortgage against the house. So you're not going to find much chance for getting a agreement there. And since everyone and their brother is flipping houses these days, good deals that do end up on the Mls are gone in an instant.
Secondly: financing. Cash is king in the flipping houses business, and if you don't have a lot of it, you will probably miss out on the best deals. It's extremely unlikely that you will be able to qualify for a mortgage on one of these properties, since banks commonly want that a property be in good health in order to loan on it. If you Are able to search and buy a property for cash, or however you're able to finance it, you're going to then need a lot More cash to fix it up. Please, don't make the mistake that many newbies do of underestimating the costs of the repairs the property will need. It never, ever ends up being just paint and a few new doorknobs.
Even so, if you're willing to hustle, invest a lot of time and money, and don't mind getting nice and dirty, it's not fully out of the realm of possibility that you'll be able to make a decent earnings flipping houses. After all, the old adage about being able to achieve anything you set your mind to became an "old adage" for a reason! But my inquire to you is: are you reasoning about investing in real estate to try to work hard, long hours (oftentimes doing by hand labor) to make a "decent" income, or are you reasoning about investing in real estate because you want to work smarter, not harder, and make enough cash so that you and your family can live a life full of abundance? I'm guessing it's the latter.
Flipping houses may not be your ticket to big money, but real estate right on is. There is a much good way to find unwanted properties (and if you no ifs ands or buts have the bug to fix something up- you'll right on find some fixer uppers), and for cheap enough that a profit- regardless of how much work is put in- is virtually guaranteed. It's called "deed-grabbing," and it's a uncomplicated way to get properties from owners who are about to lose their properties to the government because of unpaid back taxes ("tax delinquent properties") just Before the property is lost. You will find lots of motivated sellers who can't wait to get rid of their properties, for economy than you have perhaps imagined when contemplating flipping houses. K? K? Nope. You'll often be able to get properties for 00 or less, and sometimes citizen are so happy to see their property go to you instead of the "tax man" that they just give it to you outright... No joke!
It's easy- all it takes is knowing how to find these owners, contacting them when it's getting close to the time that they will lose their property, and knowing what to say to them when you get them on the phone to make them want to sell to you. Assess that with competing with every undertaker of a package deal in town for the rehab properties in your area, and I think you'll agree with me that flipping houses may not be your ticket to big money in real estate.
Flipping Houses - Your marker to Big Money in Real Estate?
