# I want to be a House Flipper.



## TrueSouthernPeach (Feb 17, 2010)

Hello,

I'm a 21 year old female who would love to do house flipping. No, I am not interested because of shows I see on TV (Though I do like to watch them once in a while) I am interested because I love to work with my hands. I love the thought of doing something meaningful and my heart breaks when I see what was once a beautiful old house in shambles. I wouldn't want this to be a hobby, I would want it to be what I do... I'm ready to get the ball rolling in any way possible, but I have a few teeny, tiny little problems:

Though my father and his father have extensive knowledge on home improvement, and major renovations... My grandfather has passed on and my father is a very busy person. I need to learn everything about house flipping. From how to even do the work, to how to buy, sell, and everything in between... I know there are books out there, and classes at some places, but I would like to get more 'hands on' experience, I am just not sure how.

I don't have much money. I'm a cashier, and I am currently saving as much money as I can so my fiance' and I can move into an apartment closer to where he goes to school. My plan is to get a better job and try my best to save up as much money as I can while renting. I am not sure if this is the best idea, though. I have even thought about just living at my parents house a while longer (they wouldn't mind at all) and saving up enough money so I can skip renting and get right into a house to renovate... But I am not sure if that is doable.

I have been really interested in fixing up old houses for a long time now, but I could never think of a way to really get into it. The reason I don't go to college is because my passions are old-fashioned simple things like baking, gardening, and just doing things with my hands. I like the idea of doing honest work as opposed to sitting in front of a computer for a living, or being a cashier! I also work my best when I'm alone, I prefer it actually. I would also NOT be doing this just for the money. For me, I absolutely love old houses and love the thought of making them beautiful. I know it would be a lot of stress/work, but I am prepared to deal with it in any way I can to accomplish my dream.

Basically what I'm asking is: How do I get started? How can I learn/teach myself all of the complicated skills of house flipping? What is the best way to do it financially? What can I do to prepare myself mentally and even physically while I save money? Please don't discourage me because I'm a girl. My family and fiance' have already told me that this is not something I should get into. However, I am deeply, and truly interested in this kind of work.

Thank you for taking the time to read this!

-R


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## crackur (Feb 17, 2010)

I haven't flipped any houses but I can tell you by just remodeling my own, you will need to read alot.

And then read some more


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## Doorguy4ya (Feb 17, 2010)

it can be a very trying business. My Father in Law did several houses several years ago, just to make few extra bucks and he ended up barely braking even. 

first off....you'll probably want to get your real state license. This will teach you all the fees, cost, and other licenses you'll need. It will also give you access to the best deals on the market, since your objective is to buy really low. 

secondly...I would either a) have a licensed contractor ready to do the work (such as your dad) or study to get your contractors license as well. there are several agency that can help you do this in a manner of weeks. (such as _american contractors exam __services_)

if its something you really want to do, take the time and study the housing market along with remodeling. I can tell you from my experience if you arent very meticulous, its not the job for you. It will also stress you out at times meeting deadlines, getting bids from contractors, getting contractors to do the work right, and selling the house to where you're making a good profit.


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## Doorguy4ya (Feb 17, 2010)

P.S ...If its something you really, really want to do. Dont let anyone discourage you, but simply get all of your ducks (real estate license, contractors license, business license) in a row. Show them you are serious by taking the time to do it right.


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## TrueSouthernPeach (Feb 17, 2010)

Thank you both for the replies!

Crackur - I would love to learn as much as possible. What are the best books you would recommend?

Doorguy4ya - I have been warned that this can be a risky business, which is why I want to know as much as I can before I jump right in. As for getting a real estate license, I actually thought about that a lot when I was in my early teens and that would be a great idea. 

I think getting a contractors license would be a great idea as well. My father is getting older and I don't think he would want to do the back-breaking work like he used to. However I would like to still learn from him or even just have him around so I don't make a huge mistake!

I have been reading and it seems like you can also specialize in restoring historical properties (Which I am most interested in) Can you get a contractors license in a certain area? Or would it be a separate kind of deal?

I would like to do as much of the hard work myself as possible to cut down on costs, and because I am perfectionist at everything I do, I know I would be very meticulous not just with the work, but with studying the housing market. 

One more thing... Not sure if this is a rumor, but I have heard that the Government will sell foreclosed houses for a dollar if they aren't sold within 6 months. Is this for real? I haven't been able to find out too much about it online.

Thanks again!

-R


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## TrueSouthernPeach (Feb 17, 2010)

Doorguy4ya - Thanks! I really appreciate the support. I really want to do this right. I just don't know where to start. Thank you for helping me!


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## TrueSouthernPeach (Feb 17, 2010)

(my other longer reply hasn't shown up yet, BTW!)


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## oldognewtrick (Feb 17, 2010)

True, I can understand how you feel seeing older houses wasting away. I really appreciate seeing people fix up and revitalize older, aging neighborhoods. If you want to pursue this, go to work for a contractor who does remodel work and see what all is involved before you loose a lot of time and a lot of money.

Just my :2cents:


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## TrueSouthernPeach (Feb 17, 2010)

Hi Oldog... Thank you for your reply.

I also live in the Nashville area. I was first inspired to do this when I went to Bell Buckle and I was so amazed at the houses down there. I began photographing every old house I came across in Bell Buckle, Murfreesboro, Old Hickory Village, and other places in Middle TN. It was then I started thinking of ways I could get involved with that kind of thing. Infact, I even went into an abandoned old house, took pictures, and pretty much just dreamed about fixing the old place up. I even went so far as to see who owned it, and it turns out another house flipper purchased it (for much, much more than I thought it would have been) and is in the process of restoring it. I wish I could have spoken with him more!

-R


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## TrueSouthernPeach (Feb 21, 2010)

Some people have told me I could volunteer for Habitat for Humanity or Rebuilding Together. I thought that was a great idea. Have any of you ever volunteered for either of these? Are they willing to train you and teach you, or would the unexperienced be hauling supplies, and that sort of thing?

In a few weeks I'm going to start taking those painting/tiling/etc classes at the Home Depot. I figure it's a good start and I'll take notes. ... In the meantime, I'm still searching around for what the best type of schooling would be!

-R


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## travelover (Feb 21, 2010)

TrueSouthernPeach said:


> Some people have told me I could volunteer for Habitat for Humanity or Rebuilding Together. I thought that was a great idea. Have any of you ever volunteered for either of these? Are they willing to train you and teach you, or would the unexperienced be hauling supplies, and that sort of thing?
> 
> In a few weeks I'm going to start taking those painting/tiling/etc classes at the Home Depot. I figure it's a good start and I'll take notes. ... In the meantime, I'm still searching around for what the best type of schooling would be!
> 
> -R



I've worked for Habitat both in building new and rehabbing older houses. Most of the volunteers are unskilled and training is provided. As you gain experience you can assist the professionals that do more complex things like wiring, plumbing, furnaces, etc and learn even more. Eventually you may be asked to take on the task of supervising the less skilled volunteers. 

You might be disappointed in the rehabbing work on some of the grander homes as Habitat does not have the time or money to refinish fine architectural details. Most homes get a vinyl siding slapped on the outside, carpet on the inside with inexpensive cabinetry, windows and appliances. 

Overall I recommend the experience, but it is not like an episode of "This Old House".


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## Con65 (Feb 21, 2010)

Hi TrueSouthernPeach:

I've never flipped a house to try to make money, but my wife and I have moved around a lot. In the 45 years we've been married, we've bought and fixed up more than 20 houses in different states.

As I read your posts, I see that you are concentrating on learning about construction methods. That's good. You'll need to know as much as possible. But buying and selling property is a business venture and the basics of a business are what will mainly determine the difference between success and bankrupcy.

The principal reasons a business fails revolves around issues like adequate capital, cash flow, market knowledge and cost control.  To buy and sell (for a profit) you must have adequate funds for the initial purchase, the necessary improvements, the selling costs and enough reserve funds to pay the 'carrying' costs of the house (mortgage, taxes, insurance, utilities, etc.).  If you do not have these funds yourself, you will need to have investors (to participate in the profit/loss) or lenders (who will need to be convinced that you have other assets they can take if your venture fails). Do not minimize the difficulty of getting someone to invest in you and your venture.

OK assuming you've got the money, you now need to have a good knowledge of your local real estate market. You seen to want to focus on restoring older houses. This is an excellent idea IF YOU FOCUS ON A NEIGHBORHOOD THAT IS IMPROVING. You want an area where people with money are moving IN rather than one where they are moving out or even one that is stable. What you are trying to do is buy low and sell high and that is influenced by the location more than any work you do on one house. I'm not familar with Nashville, but my wife always says we should look for areas where the bars are starting to sell microbrews. The advice you got about getting your real estate license was good advice.

OK you've got the money and found a few up-and-coming areas. Now you are out looking at houses. Only one thing to remember: DO NOT FALL IN LOVE WITH ANY HOUSE! Remember, this is a business you are not going to live there. You need specific knowledge about the condition of the basics of the house (furnace, roof, foundation, mold, etc, etc, etc.) and you want to buy it ONLY IF THE PRICE IS LOW. There'll always be another house. Before you make an offer, be certain you have a conservative estimate (time and money) of what it will take to put the house in salable condition. YOU WILL ESTIMATE TOO LOW which is why you'll need extra reserve funds. Also, the more you plan to do yourself, the longer it will take.

OK now you've bought the house. Remember, you are fixing it up to sell, not for yourself. Do not put your personality into the house. This is a another area where real estate experience can help you. Also be careful about trying to restore 'authentic' details unless other houses for sale in the area have done this.

I didn't address project cost control which is what I did for a living. It's to big a topic. The key principal is to know what you are going to spend and to make sure that is all you spend.

I know all this may sound like a downer, but if flipping were easy everyone would do it. That doesn't mean you shouldn't try. Just do a good job of getting knowledge, have adequate funding and check everything out before you jump.


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## Wuzzat? (Feb 21, 2010)

TrueSouthernPeach said:


> I like the idea of doing honest work


In business, the more deception you use the better you'll do, financially.  
And you are least likely to get caught.  Of 23,000 prisoners in MD only 39 are there for fraud, and yet I'm sure the number of people defrauded every day is way more than the number of people victimized by other wrongdoing.
Car dealers, trusted by only 7% of people [nurses get the max score of 85%] mix lies with truth and supposedly this is an optimum strategy. 
Does 40%/yr [for car makers] sound like a good profit to you?

You should decide ahead of time how you will handle the temptation, so that you recognize this slippery slope before you take the first step onto it.

Certainly, my last realtor was an arrogant & fairly wealthy "crook".

[ame=http://www.google.com/search?client=safari&rls=en&q=sociopath+ceo+dsm-iv&ie=UTF-8&oe=UTF-8]sociopath ceo dsm-iv - Google Search[/ame]


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## Bud Cline (Feb 21, 2010)

OK let me understand this.

You want to "flip" houses for a living.  (All of those flipper-folks are highly respected and upstanding members of society)

You are twenty-one years old.
You are under educated and have no desire to continue your education beyond high school.
You have no money.
You have no real skills to speak of.
You have no carpentry-like experience.
You aren't willing to volunteer and serve as a go-fer.
You have no financial exposure.
You have no real estate experience.
You have a father that is too busy to help you.
You want to be schooled by Home Depot.
You do have a desire.

I know....why don't you run for president next time around. 

I personally think your goal is admirable but you are very naive.  Go to work out in the field for a builder or re-modeller for four or five years then see where you are with this idea after that.


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## travelover (Feb 21, 2010)

Geesh, we're getting kinda harsh here, don'tcha think? :hide: Am I the only one who was ever 21?


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## Wuzzat? (Feb 21, 2010)

Amazon.com: How I Turned $1,000 into Three Million in Real Estate in My Spare Time (9780671201258): William Nickerson: Books


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## Bud Cline (Feb 21, 2010)

Not harsh at all.....just a dose of reality.  Sucks, don't it?


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## TrueSouthernPeach (Feb 21, 2010)

I don't plan on doing this over night... I wasn't planning on actually, physically getting started until at least 4 or 5 years from now... Until then, I was going to study, work, and just learn as much as I can.

And yes I am willing to volunteer as a go-fer, I would be happy to get as much experience as I can... It was just a question. I would love to continue my education if it has to do with helping me with my goal. My dad is too busy because he has a lot of problems to deal with right now... And I said home depot is just a good start... I figured it was better than just watching TV on a Saturday afternoon... You took everything I said wrong. I simply wanted advice for someone who is absolutely just starting out... And I got a lot of great advice on here and other places.

If it doesn't work out, then it doesn't work out. But... I really want to give it a try. Who knows, maybe I will get into that kind of work and it won't work out... But at least I will leave with maybe a better idea of what to do with my life, and knowledge on how to do my own personal home improvement someday.

-R


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## Wuzzat? (Feb 21, 2010)

TrueSouthernPeach said:


> But at least I will leave with maybe a better idea of what to do with my lfe,


This isn't the best link for this, but Dr. Burton seems to say that action will follow from your sense of purpose.
". . .a felt sense of meaning and purpose is the root out of which grow stalks of action and commitment."
from
Science and religion share a sense of purpose - Church of the Churchless

Good luck.  

Post back when you can.


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## TrueSouthernPeach (Feb 22, 2010)

Thank you for the links Wuzzat? I appreciate everyone's help... I will check out the links a bit more tomorrow morning.

I also appreciate constructive criticism. I understand what you are saying... It does feel overwhelming for me at times. I know this is a long process and that I don't have what it takes now. I am surrounded by 'reality' everyday... I know it will be hard. However, I think a lot of the people who have accomplished great things in life, or even just their dreams did at one time 'dream out of their league', so to speak... I know I have a lot to learn.

-R


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## Con65 (Feb 22, 2010)

Message from my wife:

"YOU GO GIRL!"


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## inspectorD (Feb 22, 2010)

It took Bud alot of reality to get that way. But speaking from experience is what you want. Some dreams are sugar coated, like the one where this donut goes...never mind.
Edumacate yursef any way you can, and when you feel confident enough to fly, jump out of the nest. You'll do fine, as long as you continue to educate yourself while your at it.

Life is what it is...enjoy it and follow your passions, no matter what anyone tells you...it's up to you, guts and luck to make it.:trophy:

Hang around here alot...you'll learn plenty.:hide:


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## oldognewtrick (Feb 22, 2010)

I think all the comments expressed are meant in the spirit that we'd love to see you succeed, but want you to get into this with your eyes wide open. We've all seen people get into remolding way over their heads and either can't finish a project or turn out a product of questionable quality. You have a dream? Go for it. We'll help where we can.

Remember the words of Graham "My very best is the least I can do"


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## TrueSouthernPeach (Feb 22, 2010)

Thanks everyone for the comments!

My parents actually started a business about 10 years ago. They wanted to be the first in that line of work to run a clean, honest business. It didn't work out, partly because they were very honest and hardworking, and secondly because the business they were in plummeted shortly after they started. After that, we had to move to a terrible city in my grandparents house. Even though we were able to return home to middle TN in a few years and get a nice house, we never fully recovered. Oldog/Newtrick... You are from Nashville... So I am sure you know what this 'failing industry' is I am talking about! 

Even though I was young then, it still hit hard for the whole family. I look back now and wondered if anything could have been done. Sometimes my parents wish they could go back with the knowledge they have now... But my dad still wants to start a business. He has always loved the thought of doing it, and I think if the conditions were right, he'd do it again in a heartbeat. I also know that I have my parents to give me advice and help me make better decisions as I go into this career.

I really appreciate everyone's help and comments on here. I am not going to let one person get me down... I would love to hang around here more... Unfortunately, I think I'll mostly be a 'lurker' as I don't have much to contribute, except maybe a bit in the 'cleaning' and 'off topic' sections! Hopefully I'll be able to join in more WHEN I start my volunteer work. After all, the reason I joined this forum was to get advice from the masters! 

-R

PS: Also... I would love it if you all could share your stories on how you got into your career. How old were you when you started? Was it a family thing? Do you love what you do?


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## TrueSouthernPeach (Feb 22, 2010)

I also just read the entire thread that Phatboy posted about the total remodel of his Louisiana home... WOW! How inspiring. That is exactly what I would like to do with my fiance someday... He is more of a computer guy... But I think I could get him to buckle down and work with me on a project!


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## TxBuilder (Feb 22, 2010)

TrueSouthernPeach said:


> I also just read the entire thread that Phatboy posted about the total remodel of his Louisiana home... WOW! How inspiring. That is exactly what I would like to do with my fiance someday... He is more of a computer guy... But I think I could get him to buckle down and work with me on a project!




Computer guys are good at procedural things typically. It might work out well.


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## TrueSouthernPeach (Feb 22, 2010)

I'm sure it will  I have mentioned having our first home be a fixer upper and he seemed pretty interested. Since I'm not so good with math (and he's a math genius) that will help!


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## psych1 (Feb 23, 2010)

One suggestion I would make is to not call yourself a "flipper"  that smacks of someone out to make a quick buck with the minimal investment of time, effort and materials.  Not someone I would buy a house from.  It is the "flipper" mentality (The derivatives market is based on "flipping" financial instruments) that has dragged the world economy to the brink of ruin.   

It sounds like you have a genuine interest in doing justice to the craftsmanship required to build those old houses.  Perhaps call yourself a "restorer".  Obviously to make a living at this, you have to be concious of bussiness principles, but I hope you approach this as a passion first and bussiness second rather than the reverse.  In short, I would leave the real estate licence till last.


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## pritchb (Feb 23, 2010)

I think the best way to start this is by  buying your own "fixer Upper"  and live it for 2 years while you make the improvements.  This will give you the experience you need while keeping your expenses down.  You also get the benefit of no capital gains.  (As long as you live in the house for 2 years)
I know many people that have done this over and over again.  If you start when you are young, you can have your dream house completely paid for in about 4 or 5 turns.

Good Luck!


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## Wuzzat? (Feb 23, 2010)

William Nickerson bought structurally sound houses that were cosmetically unappealing and rented them out while he fixed them up, then sold them.

I did that just once, with a house on the next block, but a bunch of hippy tenants and a divorce intervened.  Ah, those were the days!  

When you want to sell, use the Effros method.


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## Bud Cline (Feb 24, 2010)

> psych1:  One suggestion i would make is to not call yourself a "flipper" that smacks of someone out to make a quick buck with the minimal investment of time, effort and materials. Not someone i would buy a house from. It is the "flipper" mentality (the derivatives market is based on "flipping" financial instruments) that has dragged the world economy to the brink of ruin.



*there ya go!*


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## TrueSouthernPeach (Feb 24, 2010)

Psych1 - Yes, I agree 'restorer' is definitely a better word! That is what my true interest would be is to restore a house back to it's natural beauty. To be honest, it was kind of in the back of my mind that the business aspect of it is very real, and something I will need to study up on!  But I really want what I do to be something I can take a lot of pride in. From my cashiering job to portraits (which I have always done for free), I do the best I can do because I take pride in my work. 

Pritchb- This has been on my mind for a little while now! It has always been in my head that you always have to get an apartment when you first move out with your significant other, however, we discussed it and we have both saved up enough money that we could probably afford a house! Of course we are going to meet with my family's long time friend and real estate agent to discuss this with her. We also were talking and think that getting a fixer upper (not anything that will need as much work as Phatboy's NOLA home, of course!) is a great idea. Of course we're going to do as much research as humanly possible before taking such a huge step.

Wuzzat- That sounds like a crazy story! Hope things turned all right for you in the end with that one!  Thank you also for your links!

Also... Tonight at work, I noticed a customer wearing a Habitat for Humanity jacket so I asked him about it... I guess his wife in the head honcho for our area, and he gave me a business card, and a number to call and told me to ask for her! I can't wait to make the call! 

Thanks everyone for the support and advice,

-R


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## Speedbump (Feb 25, 2010)

> I think the best way to start this is by buying your own "fixer Upper" and live it for 2 years while you make the improvements. This will give you the experience you need while keeping your expenses down. You also get the benefit of no capital gains. (As long as you live in the house for 2 years)
> I know many people that have done this over and over again. If you start when you are young, you can have your dream house completely paid for in about 4 or 5 turns.
> 
> Good Luck!
> ________________



Took the words right out of my mouth.  This is very good advice.  Buy a beat up home, move in, fix it up at your own speed.  This will give you time to buy the materials needed to do the fixin.  Cause they are going to be very costly.  While your living there, you are not having two house payments, two insurance payments etc.  Once your happy with the results, put it on the market while looking for another one.  This can (I didn't say will) get you started if your careful to bank a few bucks on the way.

I have bought many pieces of property from Duplexes to very nice homes.  Usually rented them out and found out in short order, it's not a glamorous occupation.  Then the economy does a major downturn and your stuck lowering rents to get them occupied while the banks drive you nuts with payment reminders.

I could go on, but I think you get the idea.

Good luck and like was said earlier, don't let anyone talk you out of your dreams.


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## Wuzzat? (Feb 25, 2010)

psych1 said:


> not call yourself a "flipper"


Yes, tell them you're doing God's work.  
[ame=http://www.google.com/search?client=safari&rls=en&q=%22god's+work%22+financial&ie=UTF-8&oe=UTF-8]"god's work" financial - Google Search[/ame]


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## keithros84 (Mar 4, 2010)

Some people fear home renovations. I love them. I walk around my house imagining the 
possibilities and the wonders that a torn-down wall, a fresh paint job or a whole new 
bathroom and kitchen can do.

I have no experience in home renovations but like so many other do-it-yourself, I turn to 
the Internet for help in planning and executing my home-improvement projects.


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## travelover (Mar 4, 2010)

keithros84 said:


> Some people fear home renovations. I love them. I walk around my house imagining the
> possibilities and the wonders that a torn-down wall, a fresh paint job or a whole new
> bathroom and kitchen can do.
> 
> ...



Well you didn't waste anytime getting your website link out there, either, didya?


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## granite-girl (Mar 4, 2010)

I've always wanted to flip a house too.  I think it'd be lots of fun, but mostly hard work & probably lots of stress.  I think it's sad to see all of the old house being demolished.
I think starting out with some classes would be a good way to start.  Business classes for sure, maybe some construction management, try to get a job with an historical restorer, even if it's just as a secretary for now.  You need to learn & meet the right kind of people, because you won't be able to do it all yourself.  You'll need liscesened plumbers, electricians,hvac people,....
You are young and have plenty of time to get the right experience & knowledge before plunging into an expensive project like this.  
Check out Ivy Tech, or even on-line courses.

Good Luck


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## TrueSouthernPeach (Mar 4, 2010)

Thank you Granitegirl!

I actually am pretty happy because I have a job interview scheduled to work at The Hermitage! (Home of Pres. Andrew Jackson) I have been trying to get a job there since high school! It sounds like my job duties would be working in the ticket office and giving tours in the visitors center. It's definitely a great start! I know there are people there who work mainly (if not only) at the Hermitage as groundskeepers and craftsmen. Hopefully it works out! ( I have a good feeling about it! )

My fiance and I met with our Real Estate agent/Friend and she said the very first step I have to make is to establish credit which I am in the process of doing (right now I have none! I was always raised to avoid credit and now I have to hurry up and get the ball rolling!  ). I am also continuing to save as much money as possible. 

Thanks for the advice, right now I'm looking into as much as I can... I just have to get it all in order!

-R


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## granite-girl (Mar 4, 2010)

I was at the Hermitage last fall !  Very cool.  I think it's great that we still have places like that around.  Just think how old that place is & it's still pretty much standing strong- bullet holes & cannon balls & all...
I think you're on the right track, you've got an idea & a "dream". Which is a heck of a lot more than a lot of 21 year old people I know.
Good Luck and keep at it !  Don't forget your education !


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## TrueSouthernPeach (Mar 4, 2010)

That's awesome that you were there! There used to be a lot more trees, but a tornado hit it in 1998 and destroyed most of them that were planted by Andrew himself. I also think the first Hermitage may have survived the New Madrid earthquake (Though I can't find ANY info on it) which is amazing! Speaking of the NM fault... Are there ways to make a house more earthquake-proof while restoring it? I hear brick houses are the worst during earthquakes. Most people around here don't even know about New Madrid but another 'big one' (8.0 or higher) is still very possible in our lifetimes. Better safe than sorry, I always say!

-R


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## Speedbump (Mar 5, 2010)

I don't think the words "Credit Card" and "Saving Money" are supposed to be used in the same sentence.  And/or they could be construed as an oxymoron.


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## TrueSouthernPeach (Mar 5, 2010)

I know... My parents raised me to never get credit cards. They thought rent, bills, etc. would be enough to build credit. When we met with our Real Estate agent/Friend she said that I absolutely have to built credit or I won't be able to get a loan on a home. Seeing as my car is paid off, she said I need to get a credit card (possibly more than one) right away. I know credit cards can be very dangerous, but I only plan on putting a few things on like groceries, my prescription, my rent (for at home) probably no more than 50 bucks a month. I just have to be responsible, pay it off on time, and always set aside money in my account for what I spend on the credit card. I have faith in myself that I can do this right. 

-R


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## Speedbump (Mar 5, 2010)

If you can do that, your off to a great start.

Good luck.


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## TxBuilder (Mar 5, 2010)

TrueSouthernPeach said:


> I know... My parents raised me to never get credit cards. They thought rent, bills, etc. would be enough to build credit. When we met with our Real Estate agent/Friend she said that I absolutely have to built credit or I won't be able to get a loan on a home. Seeing as my car is paid off, she said I need to get a credit card (possibly more than one) right away. I know credit cards can be very dangerous, but I only plan on putting a few things on like groceries, my prescription, my rent (for at home) probably no more than 50 bucks a month. I just have to be responsible, pay it off on time, and always set aside money in my account for what I spend on the credit card. I have faith in myself that I can do this right.
> 
> -R



I'm in the process of doing the same thing. Evidently paying all your bills on time isn't enough to get a good rate.


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## Bud Cline (Mar 5, 2010)

Paying off a fifty dollar credit card bill each month isn't the kind of credit that will get you anywhere my dear. Mortgage lenders look at your "high-credit" and what it was established for. Buying groceries is not out of the norm, everyone does that.  If you want to get going go buy some furniture and finance it through the seller for a while then pay it off early by overpaying each month. Suggesting you use credit cards to establish credit is some very bad advice. There are other ways. Go to your local bank and borrow money on a ninety day note using your paid for assets as collateral.  Don't spend the money, and inside of the ninety days pay off the note including interest.  Do that a few times and you will quickly build a favorable credit report.  The only time those credit cards mean anything with your credit report is when you either spend thousands monthly and pay it off monthly or when you land in the dumpers and they reflect negatively on your record. Credit cards are not the way to go.  You should also be looking for a new realtor.


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## TrueSouthernPeach (Mar 7, 2010)

It's definitely great to get a second opinion! I wondered the same thing, too. Our realtor had mentioned there would be other ways I could try besides the card, but didn't mention them, we mainly talked about a card. Borrowing money from the bank is a great idea. Would it still be a good idea to get one credit card and use it sparingly along with borrowing money, or just avoid them all together?

Also... I got the job at The Hermitage! Right now they are going through a major restoration, and on Tuesday I get a free tour! I'm also allowed to roam the grounds when I want so I will be taking a lot of pictures and doing a lot of observing! ... I found out today that the huge majestic columns that hold up the roof are hollow and have tulipwood on the inside to hold it up... Sounds like cool stuff to me!


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## ohmy (Mar 9, 2010)

TrueSouthernPeach said:


> Hello,
> 
> I'm a 21 year old female who would love to do house flipping. No, I am not interested because of shows I see on TV (Though I do like to watch them once in a while) I am interested because I love to work with my hands. I love the thought of doing something meaningful and my heart breaks when I see what was once a beautiful old house in shambles. I wouldn't want this to be a hobby, I would want it to be what I do... I'm ready to get the ball rolling in any way possible, but I have a few teeny, tiny little problems:
> 
> ...



 Cool...I want to be a day trader...Any tips?


J/K My advice would be to get a job with someone who does what you want to do. That why you will get an education and make money.


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## crackur (Mar 10, 2010)

this story keeps getting more lovely


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## speedtree (Apr 6, 2010)

It was mentioned before, but there is a difference in the emotion and good feeling of fixing up and restoring a house (typically like you want it, or feel it should be done) and fixing up a house to flip and MAKE MONEY.  The house next door to ours was foreclosed on and the guy bought it for about half what I paid for mine.  He just sold it after doing extensive clean up and remodeling and probably made $20-30,000.  The remodeling was not what someone (or I) would probably do for our own house, but it was the cheapest and the fastest.  Not bad work mind you just not what I would choose for my own house.  It also took almost a year to sell.  

The idea of buying a fixer-upper and doing the work on it while you live there is a good one if you can live with the dirty bathrooms and kitchens for awhile.


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## StorageShedSmart (Apr 12, 2010)

TrueSouthernPeach said:


> It's definitely great to get a second opinion! I wondered the same thing, too. Our realtor had mentioned there would be other ways I could try besides the card, but didn't mention them, we mainly talked about a card. Borrowing money from the bank is a great idea. Would it still be a good idea to get one credit card and use it sparingly along with borrowing money, or just avoid them all together?
> 
> Also... I got the job at The Hermitage! Right now they are going through a major restoration, and on Tuesday I get a free tour! I'm also allowed to roam the grounds when I want so I will be taking a lot of pictures and doing a lot of observing! ... I found out today that the huge majestic columns that hold up the roof are hollow and have tulipwood on the inside to hold it up... Sounds like cool stuff to me!



The main problem with a credit card is that no matter what you put on it, how long you hold it open, or what you use it for, it is only one item on your credit file. You could put $1000s on it every month and pay it off every month and it will still only show one item as being handled correctly. Also, credits cards affect your income/debt ratio which has to be less than 27% in most states in order to be approved for a mortgage.

The credit card is a good idea for someone who has good credit (which is very different than no credit) and just needs a little shove in the right direction. It is also the easiest credit to apply for and receive. That's why most realtors recommend it. 

The best idea, if you are going to get a credit card, is to get the smallest credit card they will allow you to have (typically $100-$500 depending on the company). Then pay it to a $0 balance every month. After six to twelve months close it out. If you want, wait six months and then repeat the process. 

While you are doing this, follow the advice about the short term loan. Something for nine to twenty-four months with payments that you can guarantee you'll never miss. An investment loan is sometimes helpful with this, because the money actually ends up in a term investment where you can't withdraw it until the term is over. Be careful to make sure that the investments chosen are little to no risk, meaning very small amounts of interest over long periods of time. The purpose of this loan wouldn't be the investment, but the loan.

In the meantime, get a small overdraft protection or recycled line of credit with your financial institution. Once a month withdraw enough money to put yourself into overdraft (or a random amount from the line of credit) and deposit the money two business days later. For overdraft protection to affect your credit the change must have at least one full business day, but two is safer. In other words, if you withdraw the money and put it back right away the bank won't even register that you've made a change. 

Total process will take up to two years. At the end of the two years close every credit product that you have. Pay off all loans, request to have the line of credit removed, and pay off and close all credit cards. Every seperate loan, credit card, and overdraft product will show on your credit file. You can show up to seven before it starts deleting them. If you have seven credit products showing no problems and at least two or three going silmontaneously you will have an amazing credit score. However, keeping them open will screw your income debt ratio and you won't be given a house anyway.

In all things, don't bite off more than you can chew. A single payment made one day late can mess up the whole plan. If a single provider lists you as a "high risk" you may not be able to get a house until you can boot them off your credit file by using and receiving six new credit products. 

Just raising your credit score can be hard enough work as it is, but then again... everything worth doing is difficult. Right?


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## frozenstar (Apr 12, 2010)

With regards to credit card overall score, I saw this interesting awhile ago:

http://finance.yahoo.com/banking-bu...-hurt-overall-credit-score?mod=bb-creditcards


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## Todd-Beaulieu (May 3, 2010)

My wife and I have been in a new old home now for a little over a year now. There are stretches where we are working from the crack of dawn, till past dark. Exhaustion. Soreness. Lack of a life outside the home. We do it as a labor of love, being our own home, but I can't imagine doing this full time as a living. It's just too stressful!


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## Sam1215 (May 15, 2010)

TrueSouthernPeach said:


> Hello,
> 
> . . .
> 
> ...



These days, learning how to do short sales is the way to go.
Countless people are being foreclosed on. The banks are in *big* trouble for writing bad loans and have a real high motivation to make them good.

So, basically, you find a house where the mortgage is at or over the value that is in foreclosure proceedings (a 'Lis Pendens' in the public records). You locate the people in charge of loans in default. Then get the owners to sign a tentative agreement (contract).
You create a 'Short Sale Package' including information on why the owners can't pay, why the property isn't worth the loan, pictures making the property look *bad*, etc. and you present it to the bank (loan defaults).

If you're interested, go to the book store and buy a couple books on 'Short Sales'.


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## Rustedbird (May 18, 2010)

Somehow I wound up being the world's slowest house flipper. Didn't intend for it to be that way but a better situation would come up somewhere else in this great country, I'd have to sell. By that time, everything would be working, no more great problems hanging over my head, and I'd be looking forward to catching up on my reading and doing my hobbies.

I hope this time I stay put. 

It is a nice feeling to make house your own though. I'm at two built-in bookcases and counting.


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## thomask (Jun 2, 2010)

TSP:

My suggestion is to go out and get some hands on experience.  Start with a Habitat House, see what it takes to build or remodel a building.  Watch a house being built from start to finish. Remember that a remodel is always harder than a new house build. See what they mean when they say "up to code".  You may even get hired on as a carpenters helper or a laborer on a residential construction job.  Just remember there is no substitute for experience.  Learn from the pros both the good and bad sides of construction. Even the pros will run over budget and always plan on extra unforseen costs. Look for someone that is doing a current flip and see if you can shadow or work for them to get a real life example. 

You can do anything you put your mind to and good luck.


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