My family has thought multiple times about getting into the business of selling homes. Having a cousin who’s reached the level of being a broker, it seemed like a wonderful idea to start up a family business that would consist of fixing up old homes and flipping them for more money than we put into them. (howstuffworks)
At one point, members of my family had looked into different programs that claimed to teach you how to make money from purchasing homes, how to do things, such as a deed in lieu as a method to start picking up properties and turning them over either into rentals or selling them for a profit. (streetdirectory)
With the falling real estate market we decided to hold off on this thought. Although there’s a chance we may have had a much easier go at making money off of homes, we also would have been running into the problem of people owing way too much on their original mortgage which would have killed the profit margin. (realtor) While the family had reservations about going into the business, we considered the idea just a bit more not too long back when my parents, brother, my wife, and myself all moved in together and started renting an older home that needed some work.
A few years ago my brother found a house listed as a rental property that looked really nice in the pictures posted online. When we went to see the house in person, we saw that it was in nowhere near the shape that the picture they had posted led you to believe. While it wasn’t in terrible shape to the point of falling down, it was needing some serious rehab work, but it had a very large pool in a screened in area, and a lot of property. If fixed up properly, we knew that the house could fetch a solid profit, with my experience in a home repair store, my brothers connections to a paint company, and my father’s know how when it came to repairs, we realized this may be our chance, so we asked the landlord about possibly purchasing the home.
It seemed like a solid bet, they even agreed that the option was on the table, so we moved forward with the contract. We painted the entire inside of the house, bringing it out of the 1970s and into the modern age; we got a new sand filter and pump to repair the pool, the parents did a lot of yard work to fix it up, and if the landlord had held up their end of the deal, we would have been set. Unfortunately, they decided that they wanted to give the house to a family member instead of honoring the original verbal agreement. As a result of our failed bid, we’ve given up hope on this endeavor, but we did learn one valuable lesson in case we want to try again in the future. Always, always, ALWAYS get any agreements in writing before you sign a contract.