Can An RE Agent Flip Houses?

Well, good afternoon, everybody. This is Chris Berger. It’s time for a Berger Point.

You know, often people ask me about flipping houses. Can I do it?



Well, sure, you can do it.

And one of the examples that I give is that actually real estate agents can flip houses as well.



So let’s take a little scenario.

Here in the Hudson Valley, I had a friend of mine who did it.

And typically, let’s say $300,000 for the house, three bedroom, two bath.



Now, what he taught me was that he will essentially look, and he wanted to be the bird dog for him, to find a house in the low 200,000 area, 210, 215, 220.



So, what he was looking to do was to close on that house under 225, okay? Because he knows the retail value easily is going to be 300,000 because basically that’s what the houses of three bedrooms, two baths are going for.

So he would calculate how much money he’s going to put in ahead of time, approximately $50,000.

And he always had this number in his head, plus the cost of him borrowing money from a lender.

So he had that all figured in.

So say his total was $60,000.

S,o now he closed on the house at $225,000.

He put $60,000 in.

He’s now at $685,000.

So what does he have to sell that house to really make money well he was looking at least 325,000 because selling it at three and a quarter he’s going to have to pay some real estate fees.



However he’s going to wind up making $20-$30,000.

So, yes. I myself as a real estate agent, I can do that.



Also I have had many clients, both here and in the Fort Myers area in Florida doing the same thing.



Now, keep in mind, you can make money that way, but it’s hard work.

It’s not an easy thing to do.

And that’s my point.



You know, I’m definitely enjoying the week of the Fab Four.

You know, the Beatles, certainly my number one group.

Now and then, it’s coming out next week.

Enjoy.

--------------

Hello! I'm Chris Berger and I'm sharing my 40+ years of experience as an NY & FL realtor, home renov & prop mgmt. Yankees fan. Concert goer. Dog lover. Granddad.

1st Time Buyers Guide at http://bergerpoints.carrd