All Forum Posts by: Saar Kagan

Thanks @Pete Perez.

That's really helpful to get my head around the whole top level approach to real estate investing.  I think it's alway nice to get things explained in this way because it provides a ton of perspective.

Do you have any other ideas for phase 1?  Other than flips, wholesaling, or brokering.. are there any other common real estate related activities that I should consider?

@Jacob Pereira the reason I wasn't attracted to wholesaling is because from what I understood it requires me to build and maintain a list of potential investors that would be interested in buying deals from me. I see at as simpler to just list on the MLS and market on the Internet. If an investor wants to buy from me there, they're welcome to :)

Also, my thinking was that I could potentially make a larger profit if I find a property that's under market enough, rather than just making a standard wholesaler's fee.

Granted this would be a lower volume business than the higher turnaround wholesaling biz..

Anyway, this is just speculation so I'm looking to you guys to correct my thinking on this.. which you guys are doing an amazing job of doing.  This discussion is great!  Are all posts this lively? This is only my second post on BP!

@Todd Plambeck you're bringing up some very interesting points.  A couple follow up questions:

1. Why would it look like fraud?  Isn't this what flippers do?  You're saying that the 'fix' part is what makes the difference?
2. Are you referring to the FHA borrower as me? Or as the person I'm selling to. Because if it's me then I don't plan on buying with financing..

Thanks @Mike Sedlacek

Why such focus on the marketing aspect?  Would it be different than any other fix & flip?

I'm assuming you're just saying, "sell it as quick as possible," which would be in the interest of any flipper, no?

Here is the scenario:

I find a house that is being sold way under market (perhaps a bank foreclosure, auction, etc.) and that doesn't really need any repair.  (It may not look as good as the other houses in the neighborhood that have been rehabbed but it is still in great condition.  It is livable and sellable).

Would I theoretically be able to purchase this house and then turn around and sell it for its market value (for a non-rehabbed house) in its neighborhood?

I'm sorry that I don't have any numbers or actual details because I'm posing this as a theoretical question.  I am a beginner considering adopting house flipping as my initial strategy and I was wondering if it would be possible to do so without getting into the complexities of renovations.

As I see it I would need two things to go with this approach:

1. A lot of patience and hard work to find that deal that fits my criteria
2. Be willing to make less profit on the deal.  Since I wouldn't be commanding the highest possible price that I could get from the property were it rehabbed.

Excellent!

Thanks Joe.  That really helps.

Thanks Jonathan!

Owner-occupy is not an option for me.

I plan on reading J Scott's book on Flipping Houses.  In fact that's first on my list.

But before walking down that path I wanted to make sure my general approach makes sense..

So I'm wondering if this is a good overall strategy to begin with..

Since I don't have much capital... should I start with a few flips to generate some investment capital and then buy some rental income properties?

Does this approach make sense?  Is flipping a good place to start?

Any help would be appreciated..

btw, I know that this could take years and it's not as simple as I'm presenting it :)  I'm willing to invest the time and effort.

Thanks again!