All Forum Posts by: Account Closed

I've been flipping for some 20 years so I watch the cycles. Right now, with Deutsche bank possibly blowing up and an election looming and now going into the holidays, it might not be the best time to throw a lot of money into flipping. Before you commit money and time look into:

1) Where is the market for houses right now and which direction is the market going.

2) What kind of financing is available to your buyers. Are they going to be able to buy your proudly done flip.

3) If you misjudge the market, do you know when to dump it.

4) Can you put a spreadsheet together on your purchase costs, carrying costs, rehab costs, closing costs, selling costs, tax costs, contractors that don't show and delay your project etc. etc. etc.

5) Is the return worth the risk. I am told that the average profit on a flip in Maricopa County is $10,000 (I do much better than that because I buy correctly and I don't over do the remodel)

6) Remember, you make your profit when you buy (buy wisely)

7) Flipping:      Fun? Oh yeah.              Profitable? Not always.

A property's value is that which a buyer will pay for it. The best way to get a basic idea of what a property is worth is to look at 3 properties that sold in the last 3  to 6 months that are within 1/2 mile of the house you are considering. Redfin allows you to do that. Even then, it is only a "best guess". 

(Once, I paid for THREE separate appraisals, done by 3 different appraisers, on a house that was worth approximately $400,000 in my estimation and the 3 were $75,000 apart.) Such is real estate investing. 

I had two Realtors tell me this week they would NOT do the Real Estate License thing again. One has been a Realtor for 25 years.

1) It slows them down

2) They have to answer to their Broker/Association

3) Prevents them from freely doing creative things. They can still do "creative" but they have more liability and it isn't worth it.

4) You can take the courses anyway, for the knowledge, but not take the license.

5) You would be new and once you've hung your license with a Broker, you have to clear every transaction with them and they would be wondering why you aren't doing things that puts money in their pockets.

6) Getting a license is just an excuse so you don't have to start looking for investment properties. Get off your butt and Just start looking. Use Zillow or Redfin. You don't need the MLS. Plenty of other ways.

7) You can pay a Realtor a few hundred dollars for the MLS. (I do when I think it might be useful.)

8) Team up with another Investor for a year or so. You'll learn everything you need to know and learn it the right way.

9) I buy and sell without Realtors. I generally get 10% more from the buying public than a Listing Agent (since they are eager to get it sold and under price to sell fast) gets and I don't have to pay the listing Agents fees. I will though pay the Buying Agent's fees if they bring a qualified buyer to me. They've earned it in that case. 20% of Realtors are good, 80% are not making a living at it.

Not that I have any opinion on this matter. :-)

As stated above, contact a Title Company for a Title Search first, then you can decide what you want to do. There may be Child Support, IRS, Medical, ex spouse, property line suits and other kinds of liens on the property. It may be in a bankruptcy or better yet have been in a bankruptcy and wind up with a relatively clear title. Then walk the neighborhood at night with plenty of protection and find out why nobody wants it. You may not want it yourself. My level is "if I see women clutching their purses and walking/running scared, I probably don't want the property. ;-)

Whatever you decide to do, involve an attorney. At 80 and beyond memories aren't so good and lawyers and prosecutors have a great time these days with non-witnessed transactions. What if a non-mentioned relative shows up on the scene and claims bad things or she "doesn't remember the agreement" at some point. If she should move out, it's less of a problem. But, with her staying in the property it can look awfully fishy awfully fast which would be awfully bad for you. There are ads locally run by attorneys looking for these type of transactions that weren't done properly.