Anyone "flip" houses?

[Desnik]

You know what I mean? Buy a fixer upper to make money.

Here's the situation. DH and I have flipped 3 houses in the past. But, we have always lived in them(primary residence). Now we are looking into doing it but not having to live in the house. Just as an investment. DH works for Verizon, but also has his own home improvement company. So, we have all the "connections" and can renovate a house pretty quickly and inexpensively, plus we've done it before so we know what to expect. I am a SAHM so I would be hands on with the day to day stuff, making sure things run smoothly. A house came on the market literally 2 blocks from us so we are really interested in it. It is a fixer upper and is priced right.

Now to my questions. How do you go about getting financing for something like this? Since it is not a primary residence I was told it is hard to get a mortgage. I would be willing to do a low interest loan because we will be selling it within a few months. Any advice on the financil aspect on a venture like this? Do we use our own funds for the renovations, or just borrow more from the bank? Can you get the mortgage and then extra money for the renovations at the closing? Any help please I appretiate it. Should I go to any specific mortgage company/bank?

 

[vettechick99]

I haven't but would love to (just isn't a market here). Have you seen "Flip This House" or "Property Ladder" on A&E and TLC respectively? They don't talk about how to secure financing, but you will see how difficult and time-consuming it is.

Three years ago I almost bought a home that was 4 blocks up from my apartment. It was a mess but it had so much potential and in an up-and-coming neighborhood. It was on the market for $75K but by the time I saw it, someone already had a contract on it.

Three months later it was fixed up and sold for $130K. I was so jealous!

Since you've had several mortgages already, I'd contact your lender. He/she would help you figure things out. Good luck and keep us posted!

 

[C.Ann]

My brother and his girlfriend have been doing this in Florida - with brand new houses.. They buy in at the pre-construction price and have buyers lining up at their door to purchase the houses when fully constructed.. They've made an enormous amount of money and there's absolutely no work at all involved for them..

 

[powellrj]

We have worked with a mortgage broker before and they can really be a great help. I would give one a call and see what they tell you. I know the one we work with says he works with people that buy and sell within a short period of time everyday.

 

[dadtoagirl]

I've kicked a house before, not sure I'm strong enough to flip one over.

 

[Kermit]

We plan to do that later as part of our financial plan. However, we're going to do it only after we've saved enough money that we don't need to borrow any money to do it. I know that people do make money doing it with borrowing, but a lot of people go broke that way, too. Dave Ramsey, the financial advisor we listen to, became a millionaire that way and then had to declare bankruptcy later.

I don't think that everyone who does it will lose money, but I just wanted to give you the other side.

 

[C.Ann]

We plan to do that later as part of our financial plan. However, we're going to do it only after we've saved enough money that we don't need to borrow any money to do it.QUOTE]
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Definitely! My brother and his girlfriend don't "borrow" to flip houses - they each use cash, each kicking in half.. Their long histories of living on cash only has left them flush enough to jump on these situations and earn remarkable amounts of money on these investments.. They're so much like "The Millionaire Next-Door".. If you ever met them, you would think they were just average, middle-income folks..