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Hi all, I am a resident of Elk Grove, California, I've been thinking about buying a second home. At first hoping to "flip" the home for a profit but I did more research and found out it may not be the best to do right now, especially for some one with no experience (me). I've found a quite a few homes in decent neighborhoods between $75k to $150k around Sacramento that I'm interested in, even if I wouldn't be able to sell it after I do very minor renovations, I know I can at least rent it out to get a few hundred dollars a month from it.
The biggest problems (that I know of so far) I'm having so far are locating information about what is needed in the state of California I need to buy/sell a house on my part, I will be using a real estate agent to help me sell the house but what do I need as far as licenses, registrations, or relevant paperwork? I'm sure my real estate agent can help me with some of my concerns but there may be things he might not be willing or knowing to help me.
NO offense but...
FIRST contact several mortgage lenders to find out if you even qualify to purchase a second home, that will possibly be 'flipped' or used for a rental.
Then IF you can qualify, you should spend the day with a general contractor, who might let you tag along and see what all is involved in renovating a home- it isn't easy!
Then a good real estate agent should be able to answer all your questions pertaining to buying and selling, or find someone who can for you.
none taken, I have contacted lenders and I do qualify for second home with 15% down because I have "sufficient collateral", I worked in construction for 5 years so I have some basic skills and I already have a real estate agent I can trust. Are there any information pertaining regulations you can share with me?
none taken, I have contacted lenders and I do qualify for second home with 15% down because I have "sufficient collateral", I worked in construction for 5 years so I have some basic skills and I already have a real estate agent I can trust. Are there any information pertaining regulations you can share with me?
Your agent can help you buy the house too. Since you don't know what you are doing yet, I would strongly encourage you to use your agent in the purchase and then sale of the home.
Do you mean building permits? Stuff pertaining to any work done on a house??
I'm familiar with the permits on construction, what I'm worried about is paperwork I need as far as being an individual buying/selling homes for profit.
Quote:
Originally Posted by Silverfall
Your agent can help you buy the house too. Since you don't know what you are doing yet, I would strongly encourage you to use your agent in the purchase and then sale of the home.
Good news: there is no regulation or requirement to have any sort of "paperwork" to attempt to buy / sell homes for profit.
Bad news: see above.
I would guess that upwards of 90% that think they can "flip" a home profitably will lose money. In the current situation, where home values are way down, buyers are scarce and things will likely remain that way for some time you would have to be very good at doing a lot work your self, very saavy about what to spend money on and where to economize and STILL have lots & lots of luck ALL go your way...
Since you have a home already I would suggest that you are a little better off than some one with no clue about how expensive home maintenance can be, let alone fixing up and flipping a home, BUT STILL you really need to bone up on what other buyers MIGHT be enticed to paying for AFTER you have bought a house IF you could can some experience.
Being a land lord is GREAT TRAINING for learning how many different kinds of people want a home to live in. Similarly getting a real estate agent's license and seeing first hand what kinds of things people shop for can give you valuable insight into what sort of things you can do to make a house sell for more than you put into it...
Good news: there is no regulation or requirement to have any sort of "paperwork" to attempt to buy / sell homes for profit.
Bad news: see above.
I would guess that upwards of 90% that think they can "flip" a home profitably will lose money. In the current situation, where home values are way down, buyers are scarce and things will likely remain that way for some time you would have to be very good at doing a lot work your self, very saavy about what to spend money on and where to economize and STILL have lots & lots of luck ALL go your way...
Since you have a home already I would suggest that you are a little better off than some one with no clue about how expensive home maintenance can be, let alone fixing up and flipping a home, BUT STILL you really need to bone up on what other buyers MIGHT be enticed to paying for AFTER you have bought a house IF you could can some experience.
Being a land lord is GREAT TRAINING for learning how many different kinds of people want a home to live in. Similarly getting a real estate agent's license and seeing first hand what kinds of things people shop for can give you valuable insight into what sort of things you can do to make a house sell for more than you put into it...
Good Luck!
I put into consideration the situation the real estate market is in, that is why I am leaning towards buying rental properties instead, holding on to it for the next 5 years and hopefully the real estate market will improve, being relatively young (25) I am not looking at this as something I can rely on in the future and not blow my money on all the toys I'm always tempted to buy haha.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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There is no license required to flip a house in CA. Since you've been in the trades, (hopefully doing some remodeling work) you know how doing things like opening up a wall leads to finding a bunch of other things that need fixing, and doubling the time (and halving the profit). If you can get away with cosmetic repairs, you're way ahead of the game and your agent can best give you an idea of what a home would sell for after the effort.
You might want to consider getting a real estate license yourself, so that you could lower your front and back end costs.
As a real estate broker in Colorado, I work with many investors (it's my thing!) and I've done several investment properties - including rentals over the years. I'm well versed in the same.
I suggest you hook up with a local real estate broker who is very well versed in investment properties. If you can find a broker who you can depend on and work with - you'll do well.
Best wishes.
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