Investment Opportunity Question...

[soulcougher73]

I have a 2 co-worker friends who are getting into flipping homes. They have already done 1 and liked it and are looking for other friends who would like to go in as investers only so they have more money. It is very basic..if i put 10% in i get 10% of the profit.

Anyways my question is..what is the way or type of loan to get or line of credit to get for this venture? It does not have to a lot of money. Maybe 20k tops. I do not own a home so i have no equity.

If you need more info from me to better narrow down the options just ask away.

Thanks,

 

[FoBoT]

you are five years too late

don't do it

i guess you haven't read about the housing bust

 

[LegendKiller]

lol. Getting into flipping houses? Welcome to 2005/2006. If you haven't heard let me introduce you to a new concept.

The housing market sucks. Doing this now, in most areas, is begging to get f'd.

 

[aldamon]

Get some new friends.

 

[Epic Fail]

are you borrowing money to flip a house now?

then let me tell you this great investment from my royal prince in Nigeria.

 

[AgaBoogaBoo]

Don't think you could flip, but with prices being low, it would be a good time to buy property to sell when prices go back up.

 

[soulcougher73]

I understand the market is down right now. But they are looking at houses that are like under $25k to buy and they resell for $50-60k range. These are the houses to hit because a mortgage on that is about rent level. The $150k+ houses are the risky ones right now. I mean hell miniman wage can probably afford $50k house.

But the housing market was not my question. My question still stands.

 

[SearchMaster]

No offense, but if you don't have the cash to outlay for 10% of a $25k house (plus, I'm assuming, no more than $10k in upgrades to sell at $50k), then you probably shouldn't be investing it.

Flipping houses at that price range wouldn't be a huge gamble, but keep in mind that if the house doesn't sell for a year (for whatever reason), you're going to have to make payments on your loan. If you can afford that, then take that money monthly and start saving, THEN dump it into your friends' venture after you have the nest egg built up.

 

[Epic Fail]

I don't know how you would split the profit with your partners if you are just a cash investor, flipping a house from $25k to $50k is highly unlikely if you don't work on it and that will be a lot of time calling contractors or doing it yourself.

It will be impossible to borrow a loan from a bank so you can go flip a house. You need the capital to first buy the house, then you can borrow a loan for remodeling.

 

[DaveSimmons]

Another vote for this being a bad idea, especially if you have to go into debt to do it.

If you want more money fast, cut back on luxuries like fast food meals and buying things that you don't really need. Bring a can of soup for lunch, drink coffee at home instead of Starbucks, etc.

 

[Ns1]

Originally posted by: soulcougher73
I understand the market is down right now. But they are looking at houses that are like under $25k to buy and they resell for $50-60k range. These are the houses to hit because a mortgage on that is about rent level. The $150k+ houses are the risky ones right now. I mean hell miniman wage can probably afford $50k house.

But the housing market was not my question. My question still stands.

what the fuck? buyin a 50k house? where do you live, BFE?

 

[pyonir]

Wow.

Good luck with that.

 

[Epic Fail]

Originally posted by: NeuroSynapsis

Originally posted by: soulcougher73
I understand the market is down right now. But they are looking at houses that are like under $25k to buy and they resell for $50-60k range. These are the houses to hit because a mortgage on that is about rent level. The $150k+ houses are the risky ones right now. I mean hell miniman wage can probably afford $50k house.

But the housing market was not my question. My question still stands.

what the fuck? buyin a 50k house? where do you live, BFE?

no, it's 25k house...

 

[JoLLyRoGer]

Originally posted by: LegendKiller
lol. Getting into flipping houses? Welcome to 2005/2006. If you haven't heard let me introduce you to a new concept.

The housing market sucks. Doing this now, in most areas, is begging to get f'd.

Flip in Phoenix or Tucson, our market in AZ is still pretty good, especially around the major metros.

Fact, Arizona is currently the fastest growing state in the Union.
Fact, Phoenix is the fastest growing city in Arizona.

 

[BrunoPuntzJones]

Originally posted by: NeuroSynapsis

Originally posted by: soulcougher73
I understand the market is down right now. But they are looking at houses that are like under $25k to buy and they resell for $50-60k range. These are the houses to hit because a mortgage on that is about rent level. The $150k+ houses are the risky ones right now. I mean hell miniman wage can probably afford $50k house.

But the housing market was not my question. My question still stands.

what the fuck? buyin a 50k house? where do you live, BFE?

First rent house I bought was $4000, fixed it up for $3k

$7k invested, HUD paid on section 8 $525 a month

 

[Ns1]

Originally posted by: BrunoPuntzJones

Originally posted by: NeuroSynapsis

Originally posted by: soulcougher73
I understand the market is down right now. But they are looking at houses that are like under $25k to buy and they resell for $50-60k range. These are the houses to hit because a mortgage on that is about rent level. The $150k+ houses are the risky ones right now. I mean hell miniman wage can probably afford $50k house.

But the housing market was not my question. My question still stands.

what the fuck? buyin a 50k house? where do you live, BFE?

First rent house I bought was $4000, fixed it up for $3k

$7k invested, HUD paid on section 8 $525 a month

I would imagine this was sometime ago.

 

[Ns1]

Originally posted by: JoLLyRoGer

Originally posted by: LegendKiller
lol. Getting into flipping houses? Welcome to 2005/2006. If you haven't heard let me introduce you to a new concept.

The housing market sucks. Doing this now, in most areas, is begging to get f'd.

Flip in Phoenix or Tucson, our market in AZ is still pretty good, especially around the major metros.

Fact, Arizona is currently the fastest growing state in the Union.
Fact, Phoenix is the fastest growing city in Arizona.

Fact: Arizona feels like the 5th level of hell

 

[JoLLyRoGer]

Originally posted by: NeuroSynapsis

Originally posted by: JoLLyRoGer

Originally posted by: LegendKiller
lol. Getting into flipping houses? Welcome to 2005/2006. If you haven't heard let me introduce you to a new concept.

The housing market sucks. Doing this now, in most areas, is begging to get f'd.

Flip in Phoenix or Tucson, our market in AZ is still pretty good, especially around the major metros.

Fact, Arizona is currently the fastest growing state in the Union.
Fact, Phoenix is the fastest growing city in Arizona.

Fact: Arizona feels like the 5th level of hell

You're damn straight!! I've been trying to convince my wife for us to move somewhere back east for going on 4 years now!! We could litterally sell out and buy something completely paid for in another market. I really don't know why people are flocking here. It's not like there is an ocean with a beach or anything..

Not me though, I'd love to vacate the 5th ring if hell as you so aptly put it.... I don't know, there's just something about green grass and big trees (you know, stuff that actually looks ALIVE) that speaks to me...

 

[BrunoPuntzJones]

Originally posted by: NeuroSynapsis

Originally posted by: BrunoPuntzJones

Originally posted by: NeuroSynapsis

Originally posted by: soulcougher73
I understand the market is down right now. But they are looking at houses that are like under $25k to buy and they resell for $50-60k range. These are the houses to hit because a mortgage on that is about rent level. The $150k+ houses are the risky ones right now. I mean hell miniman wage can probably afford $50k house.

But the housing market was not my question. My question still stands.

what the fuck? buyin a 50k house? where do you live, BFE?

First rent house I bought was $4000, fixed it up for $3k

$7k invested, HUD paid on section 8 $525 a month

I would imagine this was sometime ago.

2002

But what you call a house and what HUD considers a house may be different

900sq ft 2 bedroom in the 'hood

 

[soulcougher73]

The 25k homes are fixer uppers in the older parts of Kansas City. There are quite a few for sale all the time here. Surprises me too sometimes since i grew up in the Bay Area of CA. LOL

 

[George P Burdell]

OP was obviously deaf on the day Cramer was yelling at Bernanke.

 

[LegendKiller]

Originally posted by: George P Burdell
OP was obviously deaf on the day Cramer was yelling at Bernanke.

Cramer's obviously a moron trying to protect his buddies.