Quote:
Originally Posted by sameer.dada
I'm interested in buying property in the US for flipping after renovating. Would really be grateful for any advice.
Buying REO or foreclosures is better?
When buying these do we get to see a report of a survey about the exact condition of the house. The things you can't see in pictures Ie. plumbing, wiring, internal etc. ( to avoid surprises later which add cost and time for repairs).
Is it better to hire 1 contractor to do the whole renovation? Do they supply the material or do we need to buy separately? Ie wooden floors, paint, tiles etc.
How many bedrooms in a house for best flip potential?
How to know where the best location is? Is there any info online about home buyer's index/statistics in particular suburbs?
Thank you in advance for any input or feedback.
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Here we go again, how many more dreamers are going to come onto this and other forums, not bother reading the posts and then ask the same stupid questions. Please surprise me and tell me you've just put the tapes and books down bought at some seminar where you became over hyped (sorry they prefer the term motivated don't they?) by such terms as BTL. NMD, flip in a fortnight, etc etc blah blah blah.
How many people live in the USA?
How many more live within driving distance of the borders?
How many of them are too stupid to have latched onto ways of making money out of any form of real estate angle you can dream of?
My brother in law is a builder in the USA (His own medium sized business), My partner is a highly paid assessor. He is doing approx 170 reposession in a week.
Many of these half finished developments! Some are being bulldozed because there is no chance of them selling any time this decade.
Many are in need of fixing up. With those contacts why don't I refurb and flip?
I'll see if you can work it out for yourself.
Most Americans will not buy old if they can buy new unless A. The property is at a giveaway price. B. It is absolutely in the dream location for their convenient lifestyle. C. Has some sort of historical interest which would assist them in their exit strategy.
Given this what would be your exit strategy?
A couple of quick general rules which may prevent you making errors.
1. Never buy anything you wouldn't want for your own use if it went horribly wrong. (The first time you start thinking nothing can go wrong will be the time it will)
2. Be sure of why you wish to purchase this individual building/land. Who's financing it. How are you going to meet the payments. And, most important of all once you've bought it who's going to want to buy/rent it from you.
There are ways to make money in the US market (or some parts of it at least) If you don't have the local knowledge it becomes more of a gamble than an investment. Some areas have been cushioned from the ravages witnessed recently and some areas have thrived as a result. I promise you some of these areas have been less than twenty miles apart.
If you are asking these questions it leads me to guess (and if I'm wrong I apologize) that you are a relative beginner. If this is the case why are you leaping (a leap of faith) into a foreign market about which you clearly know nothing.
There are opportunities closer to home which if done correctly/cautiously can make you a nice little earner with far less risk. If you wish to go abroad then find somewhere closer and easier for you to reach.
If you are already experienced in the field and therefore knowledgeable - you can answer these questions yourself by doing a short term/long term cost/gains analysis.
I wish you luck with whatever you decide to do my friend but please be cautious.