I am 56 years old, single, good health. I own (am purchasing) my home and have quite a bit of equity in it. I HATE what I am doing to make a living. I want to take money out of my house, buy a fixer (FLIP), fix it up and sell it and then buy another one... I really think I would enjoy this and would be good at it (i.e. seeing the potential in a fixer upper, working on it, dealing with subcontractors). I am the type of person who JUMPS into things, although I realize I need to do some investigation into it BEFORE I get to the point of taking equity out of my home . Is there anyone who knows someone who has done this, who is in real estate, or just has an opinion and or suggestions? TIA

RHONDA

Rhonda,

I know the guy just for you to talk to - and he's in Denver.

Let me know if you are interested!

Danita

Been there, done that and own the T-shirt. There is a program on television called FLIP THIS HOUSE, not to be confused with Flip That House. The better one is in caps and it shows exactly what you're talking about better than I can explain what has happened to us when flipping houses in the past. Its no walk in the park. My end now is finding the properties to buy and the guys do the work. I can say its a ton of fun, a ton of hard work and a money maker if handled correctly. Have your people in place, BEFORE you take any money out of your home. Talented, ethical people are not a dime a dozen. Good luck and look for that program in your TV guide. I suggest you watch it a lot....before jumping in with both feet.

[ February 13, 2006, 07:35 PM: Message edited by: chatty lady ]

A friend of ours lost his executive position about 5 years ago, and after many attempts to find comparable employment - he bought a franchise to buy and sell homes. You might have seen the signs "We Buy Ugly Houses." So far, he has obtained 5 properties - but, hasn't resold anything yet.

The whole thing has cost quite a bit of money (buying the franchise, etc.) He has to have an office w/assistant. He has a crew of carpenters, etc. on a payroll. Not to mention that he has to pay the mortages on all of the properties. We are in a depressed area and things are not selling. All without any income... I worry about what will happen when the loans cannot be repaid. Will he lose his home - is his wife's income/retirement safe? He says this is all protected - but I don't think I would sleep very well.

I think doing one house at a time would be sensible. I'm sure there's plenty of information on the internet where you can hear how other people have done in your area.

We are waiting to see if my parents house sells (it's been on the market since November w/only 3 showings.) It's a great location on a beautiful river with freighter traffic passing all summer. It has frontage on the river, and also a canal w/covered boatwell. The property should be in demand - but the house is nearly a tear-down. We will take it if it doesn't sell, see if we can remodel/rebuild it. It would give DH a project (that he dearly needs) and possible make a nice profit reselling it. It would be a big job - just not sure about tackling it. Once we committ - we're in for the ride.

I'll be following your decision with great interest.

Wow, thanks for taking the time to respond! I really appreciate it! Danita - I will PM you. And I will keep this post alive with my decisions.

I have a firend who buy and rehabs homes. SHe's done very well these past few years. I'm jsut wondering how she will do with the changing real estate market.

I'm with browser on the one house at a time. That's what my friend does. She only does 2-3 a year, but bo does she do marvelous work. It's so much fun seeing a female in a house full of male contractors...and she's in charge!

I have a friend in Seattle who rebuilds and sells old houses. She's done very well and loves it. When I last talked to her she was doing several houses at a time and never knew where she was going to be from one day to the next. But, as Dotsie said, the market is changing.

Rhonda: It seems an interesting idea. Hope it all works out for you!

Just make sure you don't do it within 366 days.
You want to be exact on dates, as not to pay
short term capital gain. The market is turning.
Less buyers, more homes for sale. Turning into
a buyer's market..know what you're doing, before you do it. Advice above, to have your workers in place is the way to go. Make sure you don't
over-improve.

Yes, excellent contractors are a must.

My friend's husband got his real estate license so he could do the buying and selling. ANother way to add money to their pockets.

He also left his job and now they work together. Now he is responsible for all the systems in the houses.