Posted by Tom Kirby ¶ on April 15, 2004 at 08:24:04:
P.A.s insane taxes? Please elaborate, I want to know what I’ll paying as far as taxes and fees. Don’t want P.A to take my wallet out to lunch!
There’s not 70k equity in the deal. 70k is what I’m trying to get from my HELOC. So I can buy bank reos and flip them.
Thanx, Tom
I have alot of bank owned houses by me… - Posted by Tom Kirby ¶
Posted by Tom Kirby ¶ on April 12, 2004 at 09:46:55:
I want to start buying some to flip to other investors or fixer-uppers to would-be home owners. Should I get a HELOC credit to do these deals? I have about 70,000 in equity, 7,000 in the bank and two retirement funds I could borrrow from and then return what ever I use after I sell. This way I could build up my reserves with the profit, and start looking for sub2s. Does this sound like a plan?
Thanks, Tom
P.S I know, try to use other peoples money.
But his way would be faster for me.
Save your cash… - Posted by IB (NJ)
Posted by IB (NJ) on April 12, 2004 at 13:55:52:
and engage in flipping/wholesaling via contract assignments. Research the term in the archives. But you’re just learning your market along with the game of REI (I may be making the wrong assumption that you’re new). No need to risk all that up front cash when you don’t have to.
Re: I have alot of bank owned houses by me… - Posted by LeonNC
Posted by LeonNC on April 12, 2004 at 10:30:29:
Tom,
I’m pretty sure I’ve been seeing your name on here for a while now. I’m just wondering what you’re going to use the money for if you ONLY intend on flipping the houses. A $500 deposit should be all you need unless you intend on purchasing the houses then reselling them. That opens a whole new can of worms though.
I’m not sure it would be too easy to sell fixer-uppers to would be homeowners. I think the banks like to see them pretty before they spend money. I’d stick to flipping to investors/landlords.
In my humble opinion I’ve found it hard to make money in my area flipping junkers. It took me a long time to figure this out. There’s a lot of competition here for the few junkers we have. You might want to check out this strategy in your area before you depend on it for building your reserves. It would take me more time than I’m willing to spend to build reserves that way.
If you already have $70k that you can count on if you need it than you already have your reserves. Move onto the next step in your plan. Then again flipping junkers in your area might be just what the market is looking for. I’d say since you already have your reserves than move on with your plan and if you happen to come across some that you would rather flip then do so.
Good Luck,
Leon
Re: Save your cash… - Posted by Tom Kirby ¶
Posted by Tom Kirby ¶ on April 12, 2004 at 14:21:02:
I’m new, so go with the quick 3-5k flip.Get the house under contract and assign it to a investor. I guess your saying to get a feel for what goes on first. I guess your right, because no matter how much you read, doing the real deal gets the experience. But only one problem, a bank owned home won’t let me assign the contract. So your saying flip the sub2s or go find that abandon house?
Thanx,tom
Thanx, Tom
Re: Save your cash… - Posted by Sean
Posted by Sean on April 13, 2004 at 09:54:34:
You flip a Bank Owned property by either double (simultaneous) closing, or buying the property in an entity that you can then sell (LLC, Corp, partnership etc)
Frankly if there is 70k in equity in the deal, doing a double closing shouldn’t be a problem even with PA’s insane taxes to make some good money on a wholesale flip.