Real Estate- flipping

Flint{$N} · #1 09-04-2006, 12:08 AM

I've always been interested in real estate. Probably becuase it could potentially be one of the biggest purchases in one's life.

I'd never want to do it full time, but would like to do it p/t one day.

I'm just curious though. I'm watching all of these flippin shows on TV and I see purchase prices around ~110 USD for large lot sizes. Where I'm from (Toronto) a similar house would go for 500 in the subarbs and 850 closer to the city.

Has anyone here flipped houses?

AmadisSB · #2 09-04-2006, 12:48 AM

Flipping houses can be a great way to boost income, but just remember a few things

1) You pay capital gains on the property. Ie, you pay taxes on what you sell. (this can be offset by, maybe, deferring the gains to another property)

2)There is a penalty for breaking your mortgage early. Usually 3 months interest. So, unless you are buying the property outright, expect this expense.

3)You need skill in home renovation. if you cant, or you arent a good project manager, dont bother.

HOWEVER!!!

You can a) Make a lot of money in a short amount of time by selecting the right property for this

b) can use your gains to leverage bigger projects.

It really is a very interesting venture, but not one for the weak hearted.

xwillience · #3 09-04-2006, 12:52 AM

[ QUOTE ]
3)You need skill in home renovation. if you cant, or you arent a good project manager, dont bother.

[/ QUOTE ]

I have to disagree with this statement. One of the great things about ALL businesses is that you make money by having other people make money for you. You can hire a contractor to do the renovation but you just have to realize it eats at yoru profits. if you make 20k in two months and you didnt really life a finger... its still a good deal...

Im working on writing up a couple business plans for flipping some houses and might be coming to 2p2 ISO investors.

AmadisSB · #4 09-04-2006, 01:31 AM

you are right xwillience, however, given the high market values in major areas, such as toronto, knowing renovations or someone who does helps out a lot.

I know that without the handyman I have, my rental property wouldnt be nearly as profitable.

It can be done without, however, its a great boon to have.

snowbank · #5 09-04-2006, 04:27 AM

[ QUOTE ]
Im working on writing up a couple business plans for flipping some houses and might be coming to 2p2 ISO investors.

[/ QUOTE ]

Why would you be writing business plans to flip houses [img]/images/graemlins/confused.gif[/img] A property will either be a deal or it won't be a deal. Or did you mean something else?

snowbank · #6 09-04-2006, 04:36 AM

Flint,

I just read in another post that you took a 16 month internship being a PM. Was curious; what did you take it for if you only plan on doing real estate part time?

xwillience · #7 09-04-2006, 05:14 AM

[ QUOTE ]
Why would you be writing business plans to flip houses [img]/images/graemlins/confused.gif[/img] A property will either be a deal or it won't be a deal. Or did you mean something else?

[/ QUOTE ]

but how do you know if its a deal?

snowbank · #8 09-04-2006, 05:24 AM

[ QUOTE ]
[ QUOTE ]
Why would you be writing business plans to flip houses [img]/images/graemlins/confused.gif[/img] A property will either be a deal or it won't be a deal. Or did you mean something else?

[/ QUOTE ]

but how do you know if its a deal?

[/ QUOTE ]

If I can make money on it [img]/images/graemlins/grin.gif[/img]

PokerAce · #9 09-04-2006, 11:56 AM

I suggest you read this article:

http://www.johntreed.com/flipthathousereview.html

The TV shows don't give you the whole story.

Flint{$N} · #10 09-04-2006, 12:02 PM

[ QUOTE ]
Flint,

I just read in another post that you took a 16 month internship being a PM. Was curious; what did you take it for if you only plan on doing real estate part time?

[/ QUOTE ]

My PM role covered new product introduction in a high tech hardware company. It was pretty cool because I got to interact with many departments.