Anyone watch that new show on A&E? I watched it for the first time today, seems like a realistic look at all the work and decisions that are involved in the refubishing of run-down properties. Does anyone here do this for a living or part-time hobby? Looks like there's money to be made if you know what you're doing and get a little lucky.
I've seen it. I really like seeing how deals are done and how they come in and refurb old rundown properties. The owner and the construction foreman are always battling...kinda like Paul Sr. and Paulie on "American Chopper" but not quite to that degree. What kills me is that young girl Ginger on the show. She is driving around in a Mercedes and obviously making good $ in this guy's business and all I have seen her do is buy termite ridden homes that go way over the budget to fix up. Don't get me wrong...she seems like a really nice girl (nice body for sure :>Grin> ) but seems to be in a little over her head to be playing around with the company money. I sometimes am amazed at how lucky some people are to be in the position they are in. Maybe I am being a little harsh on her. Maybe she will learn and get better at it.
I've bought and flipped two "fixer-upper's" over the last 3 years. I found it to be a pain in the ass. I made a few dollars, which was nice. But I found that the "pre-construction" flipping is much easier to do. Older homes have a lot of "problems" and other issues that are unexpected (and can cost much more money than budgeted for in either renovation costs or lower selling price than hoped for).
This recent (last 5-8 years) boom is showing signs of slowing down. IMO it will still last 2 more years (although real estate will always be a good investment). I just purchased a new construction home and have it rented. I hope to put it on the market in 12-15 months and make $30-50K (depending on if I have to use my agent...I'll initially do a FSBO).
When interest rates rise about 7.5% I will get worried. If they stay below that I think we are all fine. Although home prices will not (and cannot) continue to rise at the percentages they have the last 5 years.....
This recent (last 5-8 years) boom is showing signs of slowing down. IMO it will still last 2 more years (although real estate will always be a good investment). I just purchased a new construction home and have it rented. I hope to put it on the market in 12-15 months and make $30-50K (depending on if I have to use my agent...I'll initially do a FSBO).
When interest rates rise about 7.5% I will get worried. If they stay below that I think we are all fine. Although home prices will not (and cannot) continue to rise at the percentages they have the last 5 years.....
Definitely money in this business.
Go to your county courthouse tomorrow (generally Fridays) morning and get into a bidding war over someones house.
You need to bring cashiers check(s). The proccess is intimadating and unorganized, so you need to become or at least meet a shark.
After you buy, find some cheap labor... Work for 3 months on your remodel and if you did homework correctly you will have about 12% in your pocket when the dust settles.
It is extremely nice biz when you have enough time/money/labor to juggle 3-4 houses at a time
If you are going into it without any funds, you will need hard money. It strips about half your profit away. Always shoot for 10-12%, and ALWAYS overestimate the amount of work that has to be done. People don't buy houses just because there is a fresh coat of paint. The market is still boyount, but the slow down gives the buyer a slightly better edge. Especially when people are still selling with prices like the market is going up 20% a year.
Another beautiful thing about this is that if you fuck up and overshoot your estimate, rent for 6 months and you can get your money back. *assuming this isn't a insane fuckup and the bubble [if there is one] doesn't burst*
Go to your county courthouse tomorrow (generally Fridays) morning and get into a bidding war over someones house.
You need to bring cashiers check(s). The proccess is intimadating and unorganized, so you need to become or at least meet a shark.
After you buy, find some cheap labor... Work for 3 months on your remodel and if you did homework correctly you will have about 12% in your pocket when the dust settles.
It is extremely nice biz when you have enough time/money/labor to juggle 3-4 houses at a time
If you are going into it without any funds, you will need hard money. It strips about half your profit away. Always shoot for 10-12%, and ALWAYS overestimate the amount of work that has to be done. People don't buy houses just because there is a fresh coat of paint. The market is still boyount, but the slow down gives the buyer a slightly better edge. Especially when people are still selling with prices like the market is going up 20% a year.
Another beautiful thing about this is that if you fuck up and overshoot your estimate, rent for 6 months and you can get your money back. *assuming this isn't a insane fuckup and the bubble [if there is one] doesn't burst*
