If you have the capital now is it too early to start buying potential properties to flip? Is a 1 year turnaround unrealistic? Thanks
It’s never too early or too late.
BIG DISCOUNTS is all you need to be buying in any market.
“waiting for the bottom” is just an invalid excuse to do nothing.
It depends on your market. If homes are selling well in your local market, it’s always a good time to flip. If not, then you can always rent them out until you get a buyer. Your investment strategy should be flexible enough to allow you to invest in any market and still make money.
Houses sell in ANY MARKET…If they are priced RIGHT.
I am buying more than I have in a very long time. I don’t do residential rentals (too much BS) I just buy them at 50% of their value, I stay away from major rehabs, and SELL THEM…I undercut EVERY home in that neighborhood/market with a VERY aggressive price.
Find a home that would sell for let’s say, $100,000. Let’s assume it needs $10K in repairs to make it NICE. Buy it for $50K, spend the $10K and sell it for $90,000 or a 10% discount. Not a bad way to make a 50% return on your money.
Be SMART when doing your rehabs…
*Replace kitchen cabinet doors (www.lakesidemoulding.com) instead of ripping out a really well built old kitchen.
*Re-Glaze that pink and black bathroom tile instead of ripping it out. These glazing companies can also re-finish tubs, bathroom sinks, and even Toilets!! HUGE COST SAVINGS!!! I usually go with white for the tub, sink, toilet, and walls and tan/beige for the floor. CHEAP and DONE in 2 DAYS!!!
*Refinish hardwood floors
*Formica over old formica, works GREAT, saves you having to build new counter tops and a BIG time saver, LOOKS BEAUTIFUL (you’ll be the ONLY one who knows).
*The absolute best thing I ever did…Steal your interior wall paint colors from model homes built by Toll Brothers, Centex, ect. These guy’s spend THOUSANDS OF DOLLARS having DESIGNERS pick those colors!!! 3 minutes in a model home with a paint store color wheel and your home will look GREAT for no money!!!
You want to make your homes look TURN KEY. The foreclosure situation is putting TON’S of homes on the market that need LOT’S of work. If yours doesn’t and it’s priced below the others IT’S GONNA SELL!!!
fdjake…
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Buy and Sell.
Keep that money churning/compounding.
-Mike
fdjake
Great remodeling tips. I haven’t tried re-glazing tile, but have had someone paint old tile black in a checkerboard effect. Just a strip of 3 rows really makes an older kitchen or bath pop.
Also have had good luck with just repainting old mis-matched cupboards white and putting in high-end handles, with matching doorknobs and more upscale faucet. A $5.00 cupboard handle is worth it.
Immaculate windows and stylish drawer/cupboard lining. Buy wallpaper, cut it to fit and use spray glue for drawer liner paper. Women (the housing decision makers) really like fresh drawers with pretty paper lining.
Then you don’t have to paint the bottom of the drawer. The sale is in the details.
Regardless of market conditions, there are always well rounded investors who know that real estate is a good investment (for those of you who buy and hold). What makes it a deal is the price that it’s purchased for.
On the other hand, if you’re trying to sell houses to retail buyers, you may have a little bit of a tough time, since the media is infecting them with the “Do Not Buy” virus. I was just checking the time on the market in my area (Jacksonville FL) and it’s about 4 - 5 months. Not too bad, if you ask me. As long as you factor in holding costs, then you should be ok regardless. Just buy it right.
For the wholesalers (which is what I am) - there is never a wrong time to get into the business. There are always hungry and smart investors who are ready to pull the trigger on an awesome deal. I’m telling you the truth when I say that 75% of all the wholesalers that were around when the market was “good” are now gone and have gotten a J-O-B. Lucky for me, I am unemployable. I think now is an excellent time to get into the business. There’s not much competition.