Posted by GregNY on July 05, 2002 at 18:18:10:
This answer is a joke right?
GregNY
Flipping - Posted by BrandonR.
Posted by BrandonR. on July 05, 2002 at 14:26:03:
I am interested in doing flipping to gain some capitol. but I have a couple of questions:
-Is it better to find houses that need rehabbed and flip them to investors. Or find a house that is in good condition and flip it to someone who is interested in buying there first home?
-Also where is the best place to find the forms to use for purchase and selling the house?
Thanks,
BrandonR.
Re: Flipping - Posted by JoeS
Posted by JoeS on July 06, 2002 at 07:21:42:
The key to successfully flipping properties to investors is knowledge! Knowledge of your target area’s values, achieved by the records at the clerk’s office. I say the clerk because not all sold properties are run through the MLS. The MLS is a valuable tool and should be utilized for finding sold comps also.
Knowledge of the types of properties that your list of investor/buyers want.
Knowledge of the properties available in your area AND the ones that will be available soon.
Preparation and knowledge are the key…the worst thing you can do is run out and put a property under contract without having an avenue to sell it!
appraisal value - Posted by Donald
Posted by Donald on July 06, 2002 at 03:05:19:
Brandon
The county/city tax assessed value should not be used to determine FMV or appraisal value.
my 2 cents
Donald
Re: Flipping - Posted by SCook85
Posted by SCook85 on July 05, 2002 at 18:58:29:
First of all PLEASE DISREGARD ANNAN’S POST IN IT’S ENTIRETY!!!
The post must be from someone just trying to lead newbies astray, it is the worst advice I have ever seen given on this board.
Flipping to homeowners is not impossible, but almost in todays market. Finding a deal and being able to get your new buyers financed with a simultaneous close is extremely difficult today. The lender wants you to justify the overnight increase in value. And they usually want you to have seasoning on the home to justify the time to do repairs.
In any event, I suggest you look to flipping fixer uppers to investors. It is how I got started, and the way that many of my students make a living today.
Happy Investing,
Steve
Re: Flipping - Posted by Annan
Posted by Annan on July 05, 2002 at 17:04:49:
In order to flip a property you need to find out what the tax assesment is for the property(This can be done by a real estate agent you know or your county tax assesor). Usually the tax assesment on any house is higher than the appraised value or whatever the seller is selling it for. The difference between the tax assesment and the seller’s asking price is how you make your profit. So when dealing with a distressed property the value is 2 or 3 times less then that of a house that is in shape or a FSBO(for sale by owner). So my advice to you is to go witha distressed property.
FLOPPING - Posted by LeonNC
Posted by LeonNC on July 06, 2002 at 13:04:31:
This is everything you never want to do. Although I got a great laugh from this post. What book did you get this information from?
WHAT ARE YOU TALKING ABOUT!!! - Posted by Stew(NE)
Posted by Stew(NE) on July 05, 2002 at 22:11:40:
Good One, you almost had me.
Re: Flipping - Posted by BIGDADDY(MD)
Posted by BIGDADDY(MD) on July 05, 2002 at 18:54:47:
Annan,
In your market this may be so but this is not a blanket statement that you should be telling beginning investors because this is not the case in most markets. Although your intentions are good the consequences of your statement about assessed values could devastate a new investors career.
If your going to depend on the assessors office you must find out what their formula is for computing the FMV and still you must check their values against COMP’S. Myself I go by COMP’s. exclusively because that’s what an appraiser is going to go by no matter what market your in.
Good Luck Investing!!!
BIGDADDY(MD)
Re: Flipping - Posted by KC Questions
Posted by KC Questions on July 05, 2002 at 18:37:12:
In my area the tax assessors are being scrutinized because the values that they place on properties are nowhere close to the true market value. For example, I have a couple houses worth about $40,000 each and they have been assessed at $3,500. Maybe in your area the assessors are a little better at determining value, but I know that is not the case everywhere.