I'm interested in doing this but don't know where to start.
I have equity from my home I want to use, but what happens after I get that out the bank???
Is it possible to Flip with a small group of people each putting in about 10k?
If so do is there a company/middleman that can do all the paper work and to make sure everybody gets paid there fair share ? Or do we (small group of inventors) buy the home, hire pros to upgrade on our own and then sell?
Tue Dec 29, 2015 1:01 pm
oldguy Senior Member
Cash: $ 717.80
Joined: 21 May 2006
quote: If so do is there a company/middleman that can do all the paper work and to make sure everybody gets paid there fair share ? Or do we (small group of inventors) buy the home, hire pros to upgrade on our own and then sell?
I know a flipper, he would buy several houses (about 15 to 20), put his crews into them - interior painters, exterior painters, flooring, all new appliances/granite counters, landscapers, etc. He would spend about $20k to $30k on each house, get them ready for market in less than a week. He listed them, set the price slightly below market, turned them in about 3 weeks. And then quickly move that $300,000 to a new house. If he could 'turn' that $300000 12 times a year, and make $20k after-tax profits on each 'turn', he could make $240k net per year on each $300k invested.
He started in about 2006 (at the bubble) and quit in about 2012 when house prices began to recover. The last few houses that he sold were bid up above asking price. Ie, the market was suddenly "too good". So instead of flipping, he kept the last 14 houses and rented them out - he still has them, has a Prop Mgr keeping them rented.
Based on what I know/see, now is not the time to flip, now is the time to be a landlord.
But one of the major advantages of real estate is that you DO NOT need a group. (The middleman that you mention is your lawyer). You can mortgage, buy, leverage money, by yourself. If you're in a group, the constant change is a hassle - one guy wants to sell out and move away, one gets a divorce ans has to sell out, yada. Plus the required agreements on which year to re-roof, when to paint, when to sell a house, buy a new one - whether to use 10X leverage or 2X leverage - it is way better to be able to make those decisions without having to meet the needs of a group. (I was a landlord for 40 years, 5 houses, I know of what I speak, lol.)
BTW, How did the PayDay thing work out?
Tue Dec 29, 2015 5:08 pm
walkernine New Member
Cash: $ 0.90
Joined: 17 Jun 2015
the payday thing going quite well, thanks for asking and great info. Now is there a way for a newbie like me to safety give 10k for a property under $150,000 without co signing anything at the bank and make a some kind of profit? What would I have to do?