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CONVERTING cheap houses and selling them for profit can be a quick, if daunting, way to make money.
The process, known as ‘house flipping’ can be made easier with a few steps.
Eric McAvoy said he expects the renovation to take just 2-3 weeksCredit: TikTok/eric_mcavoy1
One TikToker and home flipper, Eric McAvoy (@eric_mcavoy1), shared his advice and a pending success story.
A recent conversion of his is slated to earn him about $64,000.
FLIP TIP
In a post for his 60,000 followers, Eric described a property he bought for $75,000.
However, he only had to pay $15,000 up front.
His connection with a wholesaler, a real estate agent who buys cheap properties, helped him reduce the cost.
“I was able to talk to the wholesaler and understand the situation that was going on,” he said.
That’s how he learned the sellers needed money quickly.
Eric said they had family and health issues, and they needed money to pay bills.
He offered them one of two deals.
They could get either $60,000 total, or $15,000 up front and the rest in 90 days.
That meant the buyer didn’t have to take out a loan to cover the immediate cost, keeping him from paying interest.
This is called a “seller carry back,” because the seller is effectively paying for the home temporarily.
Eric said he undertook an $18,000 renovation of the home.
After two to three weeks of redoing doors, landscaping, and fixtures, he said he expected to list the house for $169,000.
The quick turnaround means that, if sold, he could make about $64,000 in profit.
MONEY HACKS
Real estate can be a high-risk and high-reward investment due to the large sums of money and expertise involved.
Many others use simpler tactics like 401ks to save money.
One financial adviser recently told a 43 year old with no savings that they should get a 401k as soon as they could.
One Texas couple recently converted their shed into a tiny home, allowing them to live rent-free.
The renovation cost the couple $16,000.
A teenager recently converted his parents garage into an apartment.
In Vermont, a grant offers cash to those looking to do similar conversions on their own properties.
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This article was originally published by a www.the-sun.com . Read the Original article here. .