The town of Scituate, Massachusetts is located right on the ocean just south of Boston, MA. It's a great little town with many beautiful properties, and of course a few properties that could use a little sprucing up.
This house flipping deal began a long time ago, before I even considered buying a property in Scituate.
House Flipping in Scituate, Mass
A couple of years ago I began regularly attending REI (real estate investors) meetings. These meetings are awesome when it comes to expanding your network and building relationships.
During one particular REI meeting I had the chance to present exactly what I was looking for to the entire group. I voiced that I was hoping to find short sale opportunities, and low and behold, that message stuck with one very important woman in the crowd.
The Importance of Networking in House Flipping
I spoke with this woman (I'd use her name but I want to make sure it is OK with her first!) after that meeting and discovered that she specializes in short sales. I was able to get on her short sale email list which was really unexpected and great all at the same time.
To make a long story really short, she eventually found this Scituate property and contacted me. Having honest, trusting relationships can really pay off in the house flipping business to say the least.
This is especially true now in our current market. Good deals don't come easily. I've noticed that the more people I am able to network with people, the more good house flip deals that come my way.
Now onto the good stuff - what we intend on making...
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Flipping Houses in Wareham, Massachusetts - Property #1
This property is located in the town of Wareham, MA - right down the road from my office. We have done quite a few house flips in Wareham over the past few years. Often times there are many great deals right under your nose. You just have to get out there and find them.
My team and I recently finished rehabbing this house and have put it on the market. So far I have received a fair amount of activity, so hopefully this house will sell quickly.
I originally purchased this home with the intent of doing a light rehab and then renting it out. Things change pretty often in this business, so after quickly selling two other properties in the same neighborhood, I decided to put this house on the market as well.
The good news is that if the house does not sell quickly, I can always fall back on the original house flipping plan and rent the home.
This is an example of one exit strategy that I commonly incorporate into my house flipping business plan. We'll continue talking about effective and important exit strategies throughout future blog posts.
This house overall did need some rehab love, however it was not a complete gut job.
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Flipping Properties in Wareham, Massachusetts | Property #2
I recently purchased this property and I hope to have the rehab process complete in 30-35 days. Needless to say I am pretty excited about this house's potential!
I am not expecting this property's renovations to be too intense. However at first glance this house looks pretty ugly for lack of a better term.
The roof is going to have to be replaced. As I have mentioned before we don't cut corners, especially when it comes to a roof. If the roof is more than 15 years old we are going to replace it no questions asked. While we are it we will also switch out the old gutters with brand new ones.
The landscaping should not be too overwhelming either which is great news when flipping properties. Adding in a few mulch beds and sprucing up the walk way will have a big impact on the overall visual appeal of the yard.
A quick power wash job to the house's exterior will clean up the cedar shingles and get the the shingles looking almost like new. In addition we are going to put in vinyl siding. I am not sure of the color yet but I am leaning towards going with a "Cape Cod grey." I think the vinyl siding will look very nice coupled with blue or black shutters.
There are two unique aspects to this property's back yard. There is a sun room and a concrete patio that both need some TLC. Instead of tearing down the sun room and ripping up the concrete patio (which would be expensive!) I am going to leave both in place and opt for a good solid clean job.
I think the future owner of this home will really enjoy the patio and the sun room. Sometimes it helps to put yourself in the shoes of the potential home buyer.
In addition we will be putting in some fencing around the back yard and also put in some mulch beds. All in all the exterior of this home, as well as the landscaping are not too bad - they both just need a little rehab attention.
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How To Flip Houses With No Money
No doubt, flipping houses has become popular these days. A lot of people contribute it to the rebirth of the American real estate business and the rise of America from a prolonged recession.
But a lot of people have the false notion that you need money to flip houses. The truth is there's been much written on how to flip houses with no money. Even if you are a full time student earning less than $25,000 a year, it is possible for you to flip houses with no money and make a profit.
So what does house flipping involve?
As we have outlined previously, house flipping is simply a process where a person buys a house that is still requiring repairs and therefore can be bought and sold at a much lower price than its actual ARV (After Renovation Value).
For example, a house bought and sold for merely $150,000 could be flipped for $400,000 when all the renovations are done.
How to Flip Houses With No Money
So is it possible to flip houses without cash or if you have really bad credit?
The answer is a resounding yes. Over time, you can save up cash and fix your credit - but you don't need that to learn how to flip houses with no money. Having your own money certainly does help, but its not necessary.
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I am often times asked the question which is better: house flipping or real estate investing?
They are actually both real estate investing in essence. However, when a lot of people think about "real estate investing" what they really mean is "buy and hold real estate investing".
So when it comes to the difference between house flipping and real estate investing (the buy and hold kind), there are big differences.
To reach an answer, it helps to define each term and put them in perspective.
House flipping is the process of buying a house and then selling it at a profit within the shortest time manageable. An investor is aiming to make a good sum of profit within a very short period of time, thus the word flipping.
Many house flippers learn how to flip houses with no money and do extremely well turning a profit in a short time with very little of their own cash out of pocket.
The typical house flipper does not hold onto the property for the purposes of income. In fact, the shorter period of time the house flipper holds the property, the better their profits usually are.
Real Estate Investing
Buy and hold real estate investment (oftentimes termed "land lording") on the other hand, means buying a house or property, holding it for a period of time thereby creating cash flow through rental income. The buy and hold real estate investor may at some point in time sell that property at a profit - or he may keep it forever.
The real estate investor might also buy the property, renovate it and rent it with the purpose of re-selling it at some time...but [click to continue…]