How To Invest My $100k And What Are Hottest Markets?
I will be getting about $100k from an inheritance in about 2 weeks. I want to use this to do my first flip, but I am not sure how to invest? What percentage should I put down etc. Also, I live in a hot market (bay area) but it is also competitive and expensive. What other areas ar hot, and has anyone flipped a fixer that they didn't live by?
I have some projects going on right now where we are looking for investors. You will get a 14% ROI in 180 days. Drop me and email on here or at jgoe8 on aol and I will give you my contact info or give me yours and I will fill you in on the details and you can determine if you are interested.
Hey, Pinky. I'm down in L.A., which is also extremely hot as a marketplace right now. (I'm trying to buy a place for me to live right now...but THAT's another story).
Anyway, from most of the real estate investors & realtors around here I've spoken with, I gather that it's really tough to make a profit buying a fixer, sprucing it up & flipping it quickly. It's not that there aren't deals out there - it's just that the second they come out, they're pounced on by everyone and their grandmother. And according to most realtors I've spoken with (and my own research), since we're in such a fast market right now, the fixers aren't discounted too much from the non-fixers. (I recently saw a house that was built in 1911 with only 110V electricity, asbestos siding, a garage about to fall in on itself, and a foundation that sloped at a slight angle, go at a probate auction for $405,000. Comparable homes in the neigborhood sell for about $425-440. It's ridiculous).
The point is not to discourage - but more to tell you that it seems to me, if you're buying a fixer-upper in a heated market, you might want to plan to keep it for a couple of years to let it mature as an investment. I know that most contractors who used to do quick flips down here are now holding them for a bit, since high prices make it so they can't make as much of a profit on them in the short term.
And I'm talking about L.A. - and we're only the Orange Bowl, compared to the Bay area, the Super Bowl of Real Estate.
Regardless, good luck!
Kipp
If you have money and no time, I would definatly go the route of investing in someones real estate ventures. I'm currently looking for someone to put up nearly $100k for a project but thats not the reason I am posting. Real Estate investing is truely unlike anything else. There is a steep learning curve and it requires dedication. Feel free to post more questions on this board or PM me if needed.
With or without 100k in my pocket, I would learn from a mentor. You must gain knowledge, especially from someone who knows whats going on and has done this more than just a few times.
Pinky,
As we have discussed before, Stockton is a very good place and it is in your back www.yard.This has been a hot market.
I am not sure that hot markets is that important for flipping. If you want to flip you want below market opportunities which may be more available in the not so hot markets.
Regards,
Ed
Postscript on last post.
I am currently doing most of a flip on a property in the midwest. I will keep the property but it has been acquired and being rehabbed .
I wouldn't spend any of that money until you learn the ropes. Many real estate development projects go bust. And remember that anything you invest in you should expect the lionshare of the profit.
If you are looking for the hottest markets I suggest you read the latest www.ofheo.gov housing report.
Good luck.