Rehab/Flip...Am I on the right Track? - Posted by Rocker Fella

Posted by Lori Samson on May 11, 2000 at 01:41:44:

If you don’t have experience you can sure make some big mistakes! I have done quite a few rehabs and I still amaze myself at how many things can still pop up unexpectedly! I have about 50 sandwich lease optioned properties and I dapple with rehabs. All my income comes from the lease purchase deals pretty much. I just couldn’t sleep tonight if I told you to just jump in and do it! I would rather see you start making some good money in real estate and when you have some comfort-cash sitting around then try one. I recommend that if you are head strong in doing a rehab then do it with a partner who has some experience. Go to a local investor group and locate you a good rehabber to partner with. Offer him that you will find the deals if he will oversee you so you don’t get into trouble then you can split the profits. I did that with the very first 5 houses I bought. I am still great freinds with this investor but we now do our own deals. In the beginning he was very interested in me because I had the time and he had the money! Now I look for the guy who has the time and I have the money. Really what I have is a private lender who will loan me the money for the purchase and the repairs. So, really the only thing I am giving is a little of my time and the private money that is availible to do deals quick! If you are are trying to generate cash try flipping a lease purchase deal for a quick 3500-5000 and go on to the next one. You can flip enough in about 6 months to generate a good 25,000 in cash and then try a rehab. The amount you will learn along the way will make that first rehab go alot easier. Good Luck, Lori

Rehab/Flip…Am I on the right Track? - Posted by Rocker Fella

Posted by Rocker Fella on May 10, 2000 at 21:09:54:

I am in the Wash DC suburban area, houses go on average from $170,000 and up,
some of course a little cheaper depending on area and condition. I want to
get in on the action and do some rehabs but dont know exactly where to begin so
I thought I would pose a hypothetical scenario and perhaps you all can show
me some upcoming mistakes I might make. OK here is the scenario…
A house in a suburban low to middle class neighborhood is selling for $160k,
should I get an appraisor to look over the house for needed repairs or should
I locate and hire someone who does actual maintenance/rehab work to let me
know exaclty how much is needed to bring it up to snuff? Should I line up a
rehabber to do my work before I buy the property.

Lets say I buy the property should there be a limit as to how much money should
go into the property to be a good flip/profit? Should $10k pretty much be the
limit to put into a property?

I am a rookie should I seek someone to guide me or just jump into it and do it?

Also how much money am I expected to bring to the table in such a purchase or should I always buy with nothing down? How much of my own money can I expect to spend, how much should I need?