2 answers
tequon
Student
Rock Hill, South Carolina
1
Question
Asked
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flip houses ?
how did youj flip houses and make profit how to make alot of money
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2 answers
Aaron Sims
Real Estate Broker
14
Answers
Birmingham, Alabama
Updated
Aaron’s Answer
Great question!
When buying a home as an investor you have 2 options, buy and hold (rental) or flip (buy and sell for a profit).
IF flipping, you have to KNOW your market. you have to know what people are buying, what they are buying for (cost). Knowing this info you can begin to look for homes that would be a good deal. IF nobody was buying 1 bed room homes on a tiny lot, and I found a 1 bedroom home on a tiny lot for a great price, unless I knew I could sell it, it isn't a good deal for a flip.
If my area was selling a ton of 3 beds 2 baths in the $200k range that are updated, then I would want to find a 3/2 that is under 200k. You'll either have to know what it costs to rehab a home(make needed repairs) or you'll need a contractor you can trust to advise you in that. If you find a home that is $150k, needs 15k in rehab and will then look like the $200k homes selling, well there is $35k in profit (minus closing costs etc).
If the $150k home needed $45 or $55k in work, well then it's not a great deal. SO you HAVE to know your numbers. Numbers will show you it works, or it doesn't.
You'll also need capital, the ability to BUY. This can be Cash, financing, partnerships, personal loans....
That's a brief overview. Hope it helped.
When buying a home as an investor you have 2 options, buy and hold (rental) or flip (buy and sell for a profit).
IF flipping, you have to KNOW your market. you have to know what people are buying, what they are buying for (cost). Knowing this info you can begin to look for homes that would be a good deal. IF nobody was buying 1 bed room homes on a tiny lot, and I found a 1 bedroom home on a tiny lot for a great price, unless I knew I could sell it, it isn't a good deal for a flip.
If my area was selling a ton of 3 beds 2 baths in the $200k range that are updated, then I would want to find a 3/2 that is under 200k. You'll either have to know what it costs to rehab a home(make needed repairs) or you'll need a contractor you can trust to advise you in that. If you find a home that is $150k, needs 15k in rehab and will then look like the $200k homes selling, well there is $35k in profit (minus closing costs etc).
If the $150k home needed $45 or $55k in work, well then it's not a great deal. SO you HAVE to know your numbers. Numbers will show you it works, or it doesn't.
You'll also need capital, the ability to BUY. This can be Cash, financing, partnerships, personal loans....
That's a brief overview. Hope it helped.
Jennifer Bari
Career Coach / Business Analyst
21
Answers
Vancouver, British Columbia, Canada
Updated
Jennifer’s Answer
Hello Tequon,
Great question!
The formula to this question is actually quite simple if you have the investment to do so - Buy low, Sell high.
1. Buy an older property that would require repairs. Take your time with it. Focus on one area of the house at a time.
2. Hire an appraiser to give a valuation of the property. They will assess and break it down by the Land value and the Building value.
3. Based on these results, you can hold on to it and rent the premises to collect revenue in order to make passive income OR you can put it on the market to see what offers you receive.
Good luck!
Jennifer Bari
Career Coach
Great question!
The formula to this question is actually quite simple if you have the investment to do so - Buy low, Sell high.
1. Buy an older property that would require repairs. Take your time with it. Focus on one area of the house at a time.
2. Hire an appraiser to give a valuation of the property. They will assess and break it down by the Land value and the Building value.
3. Based on these results, you can hold on to it and rent the premises to collect revenue in order to make passive income OR you can put it on the market to see what offers you receive.
Good luck!
Jennifer Bari
Career Coach