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With the real estate market "starting to come back", or say they say, now would probably still be a good time to do this. However, I personally do not think the market is stabilized enough to guarantee that this would be a money-making venture. The best route would be obviously be foreclosures. Banks are certainly not lending money for flipping houses, so you would have to fund this venture yourself, either using personal credit or borrowing from friends & family. If either of those are an option, and you have the time to follow foreclosures, the money up front to buy them, and can afford to wait a minimum of 3-6 months to resell, I think this would be an excellent investment!
Hi Jesse - I'm personally not a big fan of flipping house becuase it involves trying to time the real estate market, and as we have seen over the past 2 years, you never know when the bottom will fall out of the market. Instead, I'd recommend a "buy and hold" approach. The key to that is ensuring that the rent you pay can cover expenses such as mortgage, insurance, taxes, and maintenance. It's for sure not as big an immediate payoff, but you you do get the benefit of someone paying your mortgage for you, and at the end of the process you will have an unencumbered asset.
Best of luck!
(Distresses Loan Advisors specializes in helping small businesses settle or modify their SBA or conventional debt, and can be reached at JasonTees.com)
Flipping House is positive is rewording, how ever in my opinion there is a rule to fallow that I kind of made it my self,
do not get attached to the house, a lot people what they do is the by the house they spend very expensive cabinetry , doors, window . This is buyers market, and further more bank are very tight with lending.
Of course you can "Flip" houses. You can do it any time in any economy. The secret is in the "Buying" phase.
You must buy low enough so that the money invested in the buy, money invested in the repairs and preparation for sale, etc. allows you to sell at least 5-10% below the actual value (as determined by the "comparison method"), and still make the profit you need in the project.
As for the p[roblem of finding the funds to do this: Many investors provide "Hard money" loans. This is a short term, high cost loan based solely on the value of the house verses the amount borrowed. These loans do not depend on the credit score of the borrower. The rates for these loans vary from 2-6 points and 12-18 %.
The lender really makes his profit from the "points" because the loan is normally only out for 2-3 months.