Facing the biggest decision of my life

[luvintink7]

It looks like DH will be loosing his job in September. We live in an area that currently has a 10% unemployment rate. I have a job that can be done anywhere but is only part time. My boss, who is also a friend since 6th grade, has offered my husband and I work. She lives in Florida and is quite wealthy with her business. She would like to start investing in flipping homes. She would put up all the financing and we would manage the contractors to fix up the homes and we will split the profit. She has offered to pay all moving expenses and put DH on a salary to help us feel secure. She will also pay for a minimal health insurance policy. This is a HUGE move for us. We would have to move across the country. We have an adult child that has a family of his own, a college student away at school, and an eight grader. All the kids are ok with the move. I am terrified of the move. We own a small business here that gives us a small income that we have had for 20 years. So what do I do with that? I just don't know what to do.

 

[marie1203]

Has he tried to find a job around where you live? It sounds to me like a great opportunity what your friend is offering you. If your husband can't find any other job around. Since she is willing to pay for all moving expenses. Good luck!

 

[Gr8t Fan]

One major concern would be that the real estate market in Florida is in such bad shape that she may not be able to sell the properties after they've been renovated. Is she wealthy enough to be able to hold onto multiple properties until the market picks up?

 

[scrapquitler]

What is the small business that you currently own/run? Is it something that you can take with you to Florida and continue running there? If not, you'll have to figure out either how to sell it or close it down before you go.

As far as flipping houses as a business in Florida, I would be very leery of that at this point in time. I just read this week that Florida has the most vacant homes of any state in the country, and the real estate market there is very weak right now...prices are low, supply is high and sitting on the market for a very long time. It doesn't seem to me to be a good job to get into at this point. How much money can your friend realistically make _Right now_ with current conditions? If she has to carry the properties for a long time, you're not going to get a payout potentially for a long time on the sales. On the other hand, if you are ready to go when the market starts to take off again (which it eventually will, but that might be years from now), then you MIGHT be well positioned to do really well.

Another thing to consider is how fast you could sell your house that you live in now, or will you be willing to be a long distance landlord?

To me it seems like a big gamble, but sometimes those big risks include big rewards.

 

[WDWisTheBest]

It looks like DH will be loosing his job in September. We live in an area that currently has a 10% unemployment rate. I have a job that can be done anywhere but is only part time. My boss, who is also a friend since 6th grade, has offered my husband and I work. She lives in Florida and is quite wealthy with her business. She would like to start investing in flipping homes. She would put up all the financing and we would manage the contractors to fix up the homes and we will split the profit. She has offered to pay all moving expenses and put DH on a salary to help us feel secure. She will also pay for a minimal health insurance policy. This is a HUGE move for us. We would have to move across the country. We have an adult child that has a family of his own, a college student away at school, and an eight grader. All the kids are ok with the move. I am terrified of the move. We own a small business here that gives us a small income that we have had for 20 years. So what do I do with that? I just don't know what to do.

Flipping homes in Florida is very iffy right now. Many contractors in Florida who made money in the 2005 to 2008 timeframe by flipping properties are now out of business. Be careful.

 

[Nayan]

The home market has tanked here in Florida. No one is buying/selling and the amount of homes that are vacant are numerous. I have a total of 23 homes just in my subdivision that are abandoned and have been that way for well over a year and many more for sale that aren't selling and not even attracting any lookers. I'd pass the flipping offer up.

 

[Diegosmom]

Also I find construction is all about who you know. I work for a contractor (as an estimator/project manager) and my husband owns his own business doing residential construction (mostly painting). And no one is going to jump thru hoops for you with a good price or getting it done fast if they don't know you. It will take a while to get enough subs that you can trust.

Does this friend have any experience with construction.

I would feel very iffy about it.

Also sept is still 6 months out a lot can happen.

 

[HM]

I don't think I'd go for it, due to the type of work it would be. Selling homes takes months and years now, even in our area that is doing pretty well in this economy. Florida is just to iffy.

 

[erincon23]

Does your friend need to know right away, or is this an open offer? You've got five or six months until your DH will lose his job -- lots can happen by then. I would really hesitate to move an 8th grader unless you really have to. Do you and your DH know anything about flipping houses, renovation, construction, dealing with contractors? It's a very generous offer from your friend, but could quickly turn ugly if you don't know what you're doing. Good luck with all of it! We've been through it (going through it, DH out of full-time work since 10/09).

 

[luvintink7]

I know the real estate market is shaky. That is what scares me.

 

[luvintink7]

Does your friend need to know right away, or is this an open offer? You've got five or six months until your DH will lose his job -- lots can happen by then. I would really hesitate to move an 8th grader unless you really have to. Do you and your DH know anything about flipping houses, renovation, construction, dealing with contractors? It's a very generous offer from your friend, but could quickly turn ugly if you don't know what you're doing. Good luck with all of it! We've been through it (going through it, DH out of full-time work since 10/09).

DH is a contractor. That is our small business. That is one of the reasons she wants him. He is also bilingual so that is a plus.

 

[vsimeone]

Is the salary that your friend is offering enough to pay all of your living expenses in case you can't sell a house?

I agree with the PP that suggested to take some time to look for jobs in your area, explore if you can sell your home and try to make it a "last minute" decision if nothing else works out!

 

[pixiewings71]

What is your DH's job that he's loosing in September? I would tell your friend that you will think about the offer carefully, that you can't make any decisions until summer because you won't move your 8th grader until the school year is over. Take the time, discuss this with your DH a lot, decide if it's the right thing to do for your family, she should understand and be willing to wait.

 

[Colleen27]

As the wife of a self-employed contractor in a dismal market, I'd go for it if the kids are okay with the idea. Having your DH on salary would provide some stability, and if your friend is looking to get into this now I assume she understands that it is a long-term venture that won't pay off immediately. When the economy picks back up it'll be the southern states that recover strongest; businesses in our mobile society have been flocking to the southeast for years now and I don't see that trend reversing.

I don't know where you're at or what the long term outlook is for your area, but to put my response in context... We're in Michigan, trying to ride out a housing and employment market that may not recover in our lifetimes. If DH was out of work the FIRST thing I'd be doing is talking to friends and business contacts in FL, TX, and LA because we've seen far too many of our friends in the industry lose everything while trying to find work here. We want to stay where we're at and we're willing to struggle to do it, but I'd be lying if I said the fact that we have a standing "fall back" offer in Texas didn't make it easier to sleep at night when the business line just isn't ringing.

 

[nunzia]

I agree with the home flipping hesitation. It all sounded good until I saw that..I think I would pass and try for amore stable income.

 

[Speed Weasel]

Working the real estate doom-and-gloom angle a different way however...housing in Florida (that you would be purchasing to relocate into) will be an incredible value!

Others have brushed upon this, but look at

• What your options are for employment at your current location?
• What employment options could be available in the new location if everything craters?
• Factor in the sale of your current home and business.
• Consider cost of living adjustments (no income tax in FL).
• Because of the risk of this new venture, assume ZERO personal liability for its debts!

Ultimately, where you live is a function of can you make money to take care of your family. When you discuss it with your spouse (even putting it on paper), it may not be as overwhelming, and your existing situation may not be so pleasant of an option either. While moving is scary, with a little twist of the attitude meter, it is an adventure!

 

[lillygator]

I know it;s your friend, but I would be very careful...there have been tons of people here flipping homes and doing so illegally.

 

[mousebymarriage]

OP just as others have said, I would be very cautious about flipping houses in Florida right now. Let me explain:

My step father owns his own electrical contracting company in Florida (my Mom passed away in March 2009), for a long time business was booming because of all the new construction going on and even after Hurricane Charlie hit their area, business was good lots of rebuilds and extensive repairs). Then the bottom fell out! My step dad went from having 20+ guys working for him when business was good, now it's just him and my brother in law. Sadly, he had to let go of all of his employees because there just wasn't enough work. He has told me that many of his friends that were builders have gone bankrupt since the economy went sour. The builders that are still managing to hang on are selling very little if at all and many of them have had to resort to renting out homes that a few years ago would have sold almost immediately. These builders never intended to be landlords but, they had to do something other than let the houses sit empty and lose even more money.

Sorry to be such a downer but, I just want you to really think this through since the market isn't what it used to be. Good luck in whatever you choose.

 

[java]

My mom bought a condo in florida recently. She bought it because it was only $30,000.
I think stuff selling in florida is dirt cheap stuff. I would be leary of being dependent on the flipping market in Florida. Is there a High end market at this point? (I suppose yes since Disney just sent me a "great" offer on the $1.5 -8 million homes they are building)
I don't blame you for being scared. I was thinking go for it until I got to house flipping in Florida.

 

[Nicolepa]

I know the real estate market is shaky. That is what scares me.

To say the real estate market in Florida is shaky would be a huge understatement. Right now there is an 18% vacancy rate for houses in Florida. In some areas it is up to 33%.

Do a search and you will find thousands of homes for sale in any given segment. There is so much inventory in Florida right now that the only way your house even gets looked at is luck of the draw.

They are saying that the market in Florida is expected to continue to deline for 3-5 more years and then it will sit stagnent for many, many years. The article I read said they didn't expect homes to start increasing in value in Fl. until 2030 or so.