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Flipping Books

Discussion in 'Education, Learning, Books' started by Bilgefisher, Sep 6, 2007.

  1. Bilgefisher
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    Bilgefisher Bronze Contributor Read Millionaire Fastlane

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    My business partner and I want to use flipping houses as our vehicle for provide liquid assets to get our business off the ground.

    The three recommendations I have gotten so far are:

    Flipping properties:Robert Dahlstrom, William Bronchick
    How to pick up foreclosures: Wade Cook
    The Pre-Foreclosure Handbook: Frankie Orlando


    Does anyone have any other recommendations for books on either flipping or purchasing real estate for Cashflow?
     
  2. tbsells
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    tbsells Contributor

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    I don't have a book to recommend but I'll give you some good "how to" on flipping.

    1) YOU MAKE MONEY IN REAL ESTATE WHEN YOU BUY, NOT WHEN YOU SELL. A good rule of thumb is not to pay over 70% of after repaired value(ARV) minus repair costs. A 10% discount from retail is good if you have found your dream house to live in, but not nearly enough for a flip. Again, the money is made on the buy. Make sure you buy right.

    2) Budget for repairs as close as possible before you make an offer. Don't just think "I can fix it up for $10-$12k." You will underestimate. Make a detailed estimate of what every repair will cost. Add 10% to 15% to your estimate for surprises. There will be some.

    3) Select the house carefully. Usually a house that will sell under the median price for the area when repaired is the best bet. This is the classic first time buyer type of house. If the median price in your area is $150k try to buy something you can sell and make money on in the $120's or $130's. This entry level house always has buyers. Even in down markets. The neighborhood should be full of aging mini vans and pick up trucks, not shiny new SUV's. Don't buy in a war zone, but the "nice" neighborhood you want to live in probably is not the place o start.

    4) Don't forget to budget for acquisition and holding costs. Closing costs, monthly payments, property taxes, insurance, lawn mowing, utilities, etc. really add up. Don't forget them when calculating your cost.

    5) When its time to sell: Make it look good! Clean it until it smells squeeky clean. Freshen up the yard and the landscaping. Touch up everything. There should be nothing left for the buyer to worry about. They just have to move in.

    6) Price it right! Ideally this is slightly below the competition. Your house will look beter, smell better and be less expensive than theirs. It will sell quick!

    I hope this helps. I forgot to mention the importance of getting a whole house inspection before you buy. It helps to lower your risk by reducing the amount of suprises.
     
    Bilgefisher likes this.

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