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I think it's great that you want to do something for yourself, but I am not keen on the idea of your flipping houses. Maybe things will be a little better in nine months, but I don't know.
I bought, renovated, and sold six homes in the last two years as a part-time effort, so I know a little bit about this.
You're correct that it's a great time to get bargains in real estate, and it goes to reason that homes needing work will represent even bigger bargains.
The problem right now, though, is that it's not very easy to sell these homes once you're done with them. Because you're just starting out, you're likely going to be dealing with lower-cost homes, probably the kind of homes that a first-time buyer would be looking at.
The thing is, you can't sell a house if you can't finance it, and right now the mortgage market is all but dead. The 100% LTV loan is all but dead, and the loan programs that could overlook things like bad credit or weak income are gone, too.
If you're talking about buying these houses to rent them, that's another thing...but to "flip" them? I don't like your odds.
Also, I would never take investment advice from an agent or Realtor unless that person has made serious money in the business doing what you're talking about. The sad fact is that most agents and Realtors know very little about the business of real estate investment, especially renovating and rehabbing houses. And because they are often wildly optimistic about what a house will be worth, and have little idea as to what it really costs to make these repairs and upgrades, your projections are probably going to be way off.
Do you have any actual experience in this sort of business? If not, I'd read a few books on the subject, and stay away from the "no money down, no credit required, too good to be true" stuff.
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Starting in Real Estate, Welcome Randy1 of 1 people found this helpful
If I was starting a new business (and 9 months gives you time) I would
Establish a Business Name
Develop a Business and Marketing Plan
Contact SCORE. SCORE is FREE both in person and on line.
SCORE "Counselors to America's Small Business" is a nonprofit
association dedicated to
educating entrepreneurs and the formation,
growth and success of small business nationwide.
Good luck, LUCKIEST
Randy, first off thanks for serving our country. Getting into the Real Estate game right now can be risky but the rewards are there. Like Lucky said talk to Score, it's free, and they give alot of help, and advice. Second of all go to legal department where your station, they can give help, and advice on being an LLC, keep in mind in different in every state.Here are a couple of websites you can go to for help starting up in the real estate business.1 of 1 people found this helpful
First there is rehablist. com, they have a short 7 day course, (free), on flipping houses, after you sign up which is also free. They have all sort of info you there, hardmoney lenders, to articles to help you learn the real estate game. One more thing they are from the Tampa area.
The second site real estate investor.com.. It's a forum where you can network with alot of individuals in the business, and get questions answered. It is also free.
Certain area's In US can be hard to start in right now, especially Florida, but if you work hard and put the time in you can be successful in it.
You can e-mail me for questions Warren
Hello Randy again, I had the last reply short
It's true above about not to pay these Gurus for there courses, because there is so much free info out there. You can go to your local library, and find alot of books on the real estate business, and some of them are from some of the gurus on TV. You can go to a local real estate club, they might have a small membership fee, but the knowledge you gain out weighs the price you pay, also use the internet it has a wealth of Knowledge. If you think you still have to pay for this knowledge you can just write a check out to me after using one of these areas that you can use for free.
When going into the business if that's the area you want to go to great. Don't let somebody talk you into another area like rent houses, because tenants, and vacancies can be a headache too. I'm lucky I'm in the only state that the price of houses went up 4.2%. Just Know your area, and what will work for you. Tampa is a big area, could be good, but I know alot of people working that area.
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Hello all, myself and my business partner (both 22) are working to start our first business in about 9 months. This is when I will be finished my contract with the Marine Corps. He currently works at BOA. We will have 40k cash to start between us. We are in Florida on the gulf side of Tampa. Our plan is to pretty much flip houses. We would like to take advantage of the housing markets lows and purchase houses that need a little work. We will then talk with our real estate agent and see what will increase the value of the houses with the least cost to us hoping to resale for a profit. I have a couple of questions for the forums. First any advice will be great. Second I was wondering if this would be best suited as an LLC and also is there anything that I would need other than an accountant, a lawyer, and a real estate agent. Thanks a lot in advance for your responses, as I said before any advice will be greatly appreciated.