[highlightnumb]

I think its so funny when someone ask me what im studying for and then they say they say OMG i know what youre going through because i took the real estate exam. I have to bite my tongue to not say out loud i wish the cpa exam were equivalent to the real estate exam but i dont want to sound like an asshole. Dont get me wrong getting your real estate license is great but i really dont think its as challenging. The reason why i know its not as challenging because they are way too calm when they say they passed the real eatate exam lol

FAR. Feb 2014 76
REG. Jan 2015 79 half way there!!
BEC. Feb 2015 79 thank you God!!
AUD. Apr 20, 2015 and will be done. Hold that thought 65, 7/14/15 85!
Ok where was I? Oh thats right now I'm Done!!!!!!!!!
Ethics 92!!

"You down wit SEC?, yeah you know me!!!"

Cali Candidate

All Becker Materials, Wiley Test Bank, Ninja audio, Ninja MCQ, Ninja Notes

[Martin]

Do any of you have any experience flipping homes? Do you think is a profitable business (>20% return)? I want to start doing that once Im done with the CPA exam, and get my real estate license.

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[johnny_debt]

@Lilla,

I qualified my statement by saying in some parts of America. For instance in California and New York right now there are huge influxes of cash buyers from overseas, in particular China. They look to buy houses in suburban/urban areas outside of the city. In these areas, the homes practically sells themselves because of locations. The buyers normally gut out the whole place anyway because they have significant funds to do so. For intents and purposes, in these locations, the house sells themselves.

Also FYI regarding house hunters and everything on HGTV, it is scripted reality, and not reality TV. If you google it, you can find the house hunters is fake. The show property brothers I understand is very popular right now. Both brothers are actors, one is even a magician that does shows in Vegas and one brother was also in the show Smallville. Take what you watch on HGTV with a grain of salt.

AUD - 91
BEC - 84
FAR - 91
REG - 91

[johnny_debt]

@Lilla,

I qualified my statement by saying in some parts of America. For instance in California and New York right now there are huge influxes of cash buyers from overseas, in particular China. They look to buy houses in suburban/urban areas outside of the city. In these areas, the homes practically sells themselves because of locations. The buyers normally gut out the whole place anyway because they have significant funds to do so. For intents and purposes, in these locations, the house sells themselves.

Also FYI regarding house hunters and everything on HGTV, it is scripted reality, and not reality TV. If you google it, you can find the house hunters is fake. The show property brothers I understand is very popular right now. Both brothers are actors, one is even a magician that does shows in Vegas and one brother was also in the show Smallville. Take what you watch on HGTV with a grain of salt.

AUD - 91
BEC - 84
FAR - 91
REG - 91

[johnny_debt]

@juuustin,

The niche markets are the particular areas in America which I'm talking about, which is in my opinion California and New York. These places are experiencing huge influxes of all cash buyers from overseas, particularly China. The situation in China right now, is that there is an economic boom which has left a lot of money with business owners who don't trust their government. They extract large sums of money through various vehicles (art, merchandise) to get the money out of the country and invest in real estate.

Depending on your definition of Niche market, those selling homes in Manhattan or LA can rake in millions doing so. However the people operating in this niche market will require a lot of connections with those who can afford these homes. Those selling in the suburban/urban areas of those markets will make less than those making millions, but will make an amount comparable if not more than a CPA. They are practically glorified doormen right now. In my area which is in one of these markets, hearing that a house has turned over in less than a week is not uncommon.

AUD - 91
BEC - 84
FAR - 91
REG - 91

[johnny_debt]

@juuustin,

The niche markets are the particular areas in America which I'm talking about, which is in my opinion California and New York. These places are experiencing huge influxes of all cash buyers from overseas, particularly China. The situation in China right now, is that there is an economic boom which has left a lot of money with business owners who don't trust their government. They extract large sums of money through various vehicles (art, merchandise) to get the money out of the country and invest in real estate.

Depending on your definition of Niche market, those selling homes in Manhattan or LA can rake in millions doing so. However the people operating in this niche market will require a lot of connections with those who can afford these homes. Those selling in the suburban/urban areas of those markets will make less than those making millions, but will make an amount comparable if not more than a CPA. They are practically glorified doormen right now. In my area which is in one of these markets, hearing that a house has turned over in less than a week is not uncommon.

AUD - 91
BEC - 84
FAR - 91
REG - 91

[Anonymous]

I know reality TV is scripted etc. -.- However, it also usually has a remote basis in truth, which I can attest to with this because my dad was very closely involved in the real estate industry from about 2000 – 2007, so I've seen the good and the bad. The unreasonable expectations and un-predictability of buyers is pretty accurately reflected in the shows. Some buyers want everything down to the exact shade of paint to match their expectations.

@Martin There is potential in it, but to make it you have to know more about the repairs needed and resale market etc. than everyone else. Personally, I wouldn't be comfortable doing it if I was taking out large loans for the properties, but if I could buy with cash or at least 50%+ cash I might consider it. Also if you can enjoy doing some of the work yourself and be good at it – say things like repainting. The value that can be added to a house with skin-deep cosmetic stuff is amazing, but if you don't know what you're doing, you can discover problems that cost more to fix than you could hope to get out of the house. So, I'd say, yes, it can be profitable if you're knowledgeable, but no if you're an average person with dreams but no knowledge to back them up.

[Anonymous]

I know reality TV is scripted etc. -.- However, it also usually has a remote basis in truth, which I can attest to with this because my dad was very closely involved in the real estate industry from about 2000 – 2007, so I've seen the good and the bad. The unreasonable expectations and un-predictability of buyers is pretty accurately reflected in the shows. Some buyers want everything down to the exact shade of paint to match their expectations.

@Martin There is potential in it, but to make it you have to know more about the repairs needed and resale market etc. than everyone else. Personally, I wouldn't be comfortable doing it if I was taking out large loans for the properties, but if I could buy with cash or at least 50%+ cash I might consider it. Also if you can enjoy doing some of the work yourself and be good at it – say things like repainting. The value that can be added to a house with skin-deep cosmetic stuff is amazing, but if you don't know what you're doing, you can discover problems that cost more to fix than you could hope to get out of the house. So, I'd say, yes, it can be profitable if you're knowledgeable, but no if you're an average person with dreams but no knowledge to back them up.

[leglock]

in my area, there are several neighborhoods in which a good agent will make 400,000 per year. What cpa makes that?

I am in land development/build homes, have my RE license, and just got my CPA. In my area, by far, the greatest earning potential is via the RE license.

In land development, you have to have everything on the line, to make a decent return. Then, a recession like 2007 hits, and you are exposed to losing everything. When you've got loans for the projects you are developing and the demand is gone, the bank still expects their interest payment every month even when your property is worth half of what it was the previous year.

With the RE license, you have nothing personally on the line, and none of the headaches of being a flipper/land developer. You don't have municipalities dictating everything, you don't have to deal with municipal inspectors, subs trying to screw you over, etc etc. CPE is 12 hrs per year. In my state, lawyers are used to close the transactions, so an agent literally puts the buyer and seller together and then the lawyers do most, not all, of the rest. You have to put in a lot of hours if you want to make good money, but where isn't that the case.

To reiterate though, my observations are based on my market which is vastly different than many others.

[leglock]

in my area, there are several neighborhoods in which a good agent will make 400,000 per year. What cpa makes that?

I am in land development/build homes, have my RE license, and just got my CPA. In my area, by far, the greatest earning potential is via the RE license.

In land development, you have to have everything on the line, to make a decent return. Then, a recession like 2007 hits, and you are exposed to losing everything. When you've got loans for the projects you are developing and the demand is gone, the bank still expects their interest payment every month even when your property is worth half of what it was the previous year.

With the RE license, you have nothing personally on the line, and none of the headaches of being a flipper/land developer. You don't have municipalities dictating everything, you don't have to deal with municipal inspectors, subs trying to screw you over, etc etc. CPE is 12 hrs per year. In my state, lawyers are used to close the transactions, so an agent literally puts the buyer and seller together and then the lawyers do most, not all, of the rest. You have to put in a lot of hours if you want to make good money, but where isn't that the case.

To reiterate though, my observations are based on my market which is vastly different than many others.

[Martin]

thanks Lilla for the tips.

leglock, are you still flipping homes or just working in Accounting?

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[Martin]

thanks Lilla for the tips.

leglock, are you still flipping homes or just working in Accounting?

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[leglock]

my flipping/developing days for myself are just about over. The bigger developers can work on smaller margins due to their volume such that there is not enough money in it for me to warrant the risk involved. This is akin to the margins Walmart can work on vs a local grocer trying to make a living owning only one store. I had a real good run so I can't complain about the past. If I want to stay in the market, I would need to construct in the markets that yield about 1 – 1.5 million for a new home. This is not appealing to me.

I am going to work in Accounting only. The sad part is the starting salary for a cpa is less than what I made selling one home (as a developer not a Realtor) in the year 2000.

Obviously construction costs in my area are probably quite high compared to other markets, so your market may vary quite dramatically than mine. But in my opinion, if you are a good salesperson, and have to choose between being a flipper/developer, re agent, or cpa, I would advise being a re agent based on earnings, and I know the margins of each for my market.

I should add though that I would still suggest getting your cpa.

[leglock]

my flipping/developing days for myself are just about over. The bigger developers can work on smaller margins due to their volume such that there is not enough money in it for me to warrant the risk involved. This is akin to the margins Walmart can work on vs a local grocer trying to make a living owning only one store. I had a real good run so I can't complain about the past. If I want to stay in the market, I would need to construct in the markets that yield about 1 – 1.5 million for a new home. This is not appealing to me.

I am going to work in Accounting only. The sad part is the starting salary for a cpa is less than what I made selling one home (as a developer not a Realtor) in the year 2000.

Obviously construction costs in my area are probably quite high compared to other markets, so your market may vary quite dramatically than mine. But in my opinion, if you are a good salesperson, and have to choose between being a flipper/developer, re agent, or cpa, I would advise being a re agent based on earnings, and I know the margins of each for my market.

I should add though that I would still suggest getting your cpa.

[Martin]

Thanks for the tips, I already pass FAR and as soon as Im done with the exam, I will see if I can flip homes on a part time basis with another investor. Here in South Florida, you can still make a profit of 20 to 25% flipping homes.

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[Martin]

Thanks for the tips, I already pass FAR and as soon as Im done with the exam, I will see if I can flip homes on a part time basis with another investor. Here in South Florida, you can still make a profit of 20 to 25% flipping homes.

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[Author]

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