How To Flip A Property?

Comments(4)

• 
  ray_higdon31st August, 2004

  Hi Danny, yuo might try Ron Legrands Quick turn millionaire book or William Bronchick's Flipping properties.
  
  I would also study these forums for tips first.
  
  GL
  [addsig]

• 
  eddyburg31st August, 2004

  Talking to local real estate agents that are also rental owners is a good source of info.
  Also get in contact with your local landlord's association. There is ALWAYS someone who is doing what you want to do and are willing to give you tips. 8-)

• 
  dannyvensa31st August, 2004

  Thanks for the reply, i will try to get these books, also where do i find the Broward Real Estate Investors Association?..thanks again

• 
  samonenate1st September, 2004

  First of all it depends on what kind of house you want to build. Modular or stick built. Modular will be less money. Now most builders will give a price per sq.ft. You will need to have an idea of what size home you want and what you want it in. Fireplace, jacuzzi, etc. If you are not going through a developer you are going to HAVE to do your homework and be ready to work, and work hard, but the payoff can be so sweet.
  
  I assume you are not going through a developer because they are retail. But you can approach a developer before they start construction. Most people will not buy a home they cannot see. I am a creative person so this seems silly to me, but it is true. Developers need to sell a certain number of homes before construction begins or the bank will hold up their loan draws until they do. So this a good time to approach and bargain. Now after the house is built its too late. But if you buy pre construction and sell post contruction, especially after the others have been built and sold, just image the buzz your house would have. You have the Last available house. This method is the least amount of work for you. The developer takes the headaches, not you.
  
  Okay, you want to just build a house with no developer tie in. First find land. Land is key. Land is easy to find, buildable land is not. When you find land you must check the zoning with the county. Is it residential or commerical. Is it buildable, some lots have environmental restrictions, etc. Find out what the zoning requirements are and what utilities are available. Zoning is key, you have get a permit from these people so you have to begin there, do not expect the builder to do this for you. They may, but you should do this the first time so you understand the whole process.
  
  Okay, your lot is buildable. Contact a builder, for flips go modular. They are just as good as stick built home and less trouble. A modular builder may offer you a turnkey package to do everything for you. Evertything is finding the lot, which usually winds up becoming your job, building the house, and completing the site work , aka Soft Costs. Basically site work is the foundation, hooking up utilities, landscaping, steps, deck, electrical connections, etc. If the numbers look good, go turnkey. But remember that makes your builder the GC and they control the money and budget, not you. If you have the time and for your first time you should be your own GC. This will save you tons of money and give a serious education. Your builder should be able to give you financing leads if needed.
  
  Do not let the builder make the site work seem like a breeze because it's not. You are dealing with contractors and they tend to work when they need money and no other time.
  
  Once you decide on the house and costs, contact a realtor and get comps for your house. The loan company will do an appraisal, but you do not want any surprises. This is how you determine your profits.
  
  The ideal homesite for flips should be in an established neighborhood, with utilities available especially sewer and water. A septic and well can drive your profit right out the window. But don't limit yourself, check out all possibilites.
  
  Make sure builder provides you with a detailed cost breakdown which includes everything. Then go to another builder and get the same thing. The prices should be about the same for each item. Get references for your builder and check them, some homebuilders are scum and I have heard horror stories.
  
  I think you should make at least 30K on this.
  
  Email me anytime. I can also connect you to a good builder with good prices.