My business partner and I are looking at purchasing a small store. We have decided to that we need liquid assets to support running the store for 4-6 months assuming worst case scenario. In order to come up with funds we have begun researching flipping SFH residential properties. Inspired by Utah's posts we have looked into pre-foreclosures.
Currently the average house price in my town is 220k. We are hoping to initially flip houses from 125k-200k. Reasons include limiting mortgage costs, minor repair costs, and Realtor costs. We have 16k in liquid assets. I don't think we are ready for the CF side of real estate just yet and our immediate goals warrant flipping properties.
I have some concerns.
-I have talked to a real estate agent in the area (family friend) who stated he is having trouble selling houses lately and the value of homes has dropped all across the county.
- As I understand it, home mortgages are not being handed out as readily atm. This would result in less people able to buy properties.
Questions:
Is it realistic to try and flip properties in a buyers market?
Are there other methods I should research to come up with liquid assets?
With small amount of liquid assets, is pre-foreclosure the best route?
Are there other methods I should consider?
Am I missing something in the equation?
Feel free to be harsh. Its the best way to learn sometimes. I am trying ask educated questions, but If you need more information please ask.
Currently the average house price in my town is 220k. We are hoping to initially flip houses from 125k-200k. Reasons include limiting mortgage costs, minor repair costs, and Realtor costs. We have 16k in liquid assets. I don't think we are ready for the CF side of real estate just yet and our immediate goals warrant flipping properties.
I have some concerns.
-I have talked to a real estate agent in the area (family friend) who stated he is having trouble selling houses lately and the value of homes has dropped all across the county.
- As I understand it, home mortgages are not being handed out as readily atm. This would result in less people able to buy properties.
Questions:
Is it realistic to try and flip properties in a buyers market?
Are there other methods I should research to come up with liquid assets?
With small amount of liquid assets, is pre-foreclosure the best route?
Are there other methods I should consider?
Am I missing something in the equation?
Feel free to be harsh. Its the best way to learn sometimes. I am trying ask educated questions, but If you need more information please ask.
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