No Such thing as FLIPPING anymore (in Missouri)!!

Foreclosures, Short Sales, Tax Foreclosures
1

:shocked

I recently relocated to St. Louis, Missouri.

Sooooo many properties within the city limits are abandoned, boarded up or are being purchased by wealthy individuals who purchase the property, tear the building down and are putting up tons of luxury row houses (Gaslight Square) http://www.urbanstlouis.com/gaslightsq_homes.html near the Central West End (CWE) http://www.slfp.com/CentralWestEnd.html I tell you its beautiful and amazing.

I’m one of those poor bastards that just can’t get a hold of how to purchase one of these cheap properties ($5k - $30k) and fix it up. :banghead

:anon Unfortunately, i’ve been told that the term “Flip” is non existant in today’s market here in Missouri, cause you have to hold onto the property for at least 2 months before you can sell it. WTF?

After I purchased all these books and R.E. programs while living in expensive New England, now I come to the inexpensive mid-west and fizzle out. :bs

Okay, so my questions here are:

  1. how the heck can I purchase a property with no money and great credit? (sounds like "We buy homes cheap)
  2. how can I purchase a run-down, boarded up property (same scenario) and get it fixed up and sell it? (no money remember)

I’ve heard about the FHA 203k (or something like that), anyone get one?

I want to actually purchase a mixed-use property and a commercial building for artist lofts…are there any programs to help me do this within this VERY POOR, working class, 90%, African-American community? :deal

Would love to hear from of the successful investors and newbies who’ve done it and made a nice profit!

Thanks REI folks

2

Just my opinion, but if you want to go into the fix and flip business you need some liquidity just like any other business.
If you are interested in being an owner occupant most cities have programs aimed at getting those boarded up properties owner occupied. You can usually piggy back these local programs with a 203k or other rehab type loan. I know up here in Mpls/St.Paul with good credit you need very little cash for an owner occ purchase of a rehab.
I would suggest you start by checking out several different loan officers. And I emphasize check out SEVERAL! Find one that really knows and understands local rehab programs.
And BTW flipping is actually making a comeback :smile

3

Bob,

Thank you for responding.

4

what are the comps suggesting? start working with a realtor - who can help you out a little - the only problem is - realtors (those worth their salt) aren’t really going to spend the time because you’ve got no money.

5

I’d recommend that you check out the South Side Investment Club in St. Louis. This is a great investment club and the relationships you form will help you get the answers you need to work in this area. You can find it at http://www.meetup.com/TheSouthSideInvestmentClub/about/. This group focuses more on the city of St. Louis, I think.

Another great local REIA group is The Street, at http://www.streetreia.com/. The people involved with this group are highly experienced and knowledgeable. The whole metro area, including across the river in Illinois, is addressed by this group.