Pilot and real estate

[Dreampilot]

I dont even know where this post belongs but people seem to answer this section the fastest. I really wanna become a pilot but dont want to be broke either. By broke, I mean absolutely no money to live. I would like to know if I could be a pilot and do real estate on the side. Does anybody do this and if so can you give me some details.

Thanks alot. this site is great

[CRoper]

I think that is a great idea! That's actually what I am planning on doing once I get to a regional.
I think the hardest part of doing this would be finding a broker that would be flexible enough with you and your airline career.
I really haven't done a lot of research on the field yet, since I am still focusing on my CFI and builing time. But I don't see any reason why real estate wouldn't work on the side.

[BoilerPilot2007]

Spoke to a pilot who just got on with Southwest. Flew previously with ASA for 10 years. Anyway, he's into the whole "house flipping" thing... you buy a crappy house for cheap, dump some money into repairs, and sell it for a profit. It's definitely something I'll rope my mom into helping me with, and might be able to make a little beer money with

[88MPH]

Originally Posted by BoilerPilot2007

he's into the whole "house flipping" thing...

I'm still in limbo between inst/comm, but this is what I'm doing!

Still on my 1st house, and already have 50K in equity!!! But it was a foreclosure, and a RARE find! Plan to sell in a couple months cause we're living in it while upgrading!

[scoobs]

I looked into fliping but i think it has to the right area and the right market.

[88MPH]

Originally Posted by scoobs

I looked into fliping but i think it has to the right area and the right market.

You mean like LA, where an 'average' 1 story 2 bedroom goes for around $280,000!

I really don't know exactly, but I do agree with Scoobs BIGTIME!!! Foreclosure is the ONLY reason I was able to do it in Tucson! It's a tough market here!

[iflyhi22002]

I am an agent in Phoenix, and currently sell condo conversions-basically I sit in an office all day and show the models, sign people up, and sit back and wait for them to close. Only problem is I work Mon-Sat, 10-6 so it doesn't leave alot of time.
My plan is I'm saving up all my commissions from this project to pay cash to complete all of my ratings and use what's left for living expenses.
One thing-if you are in resale, you are an independant contractor-which means you set your own schedule, and work when you want to. It is the perfect fit for flying. That is what I plan to do, fly and do this on my days that I am home. Doesn't take alot of time, and if you only do a deal or 2 a month, at 3% minus your fees..it's a nice additional income.
If you have any questions, feel free to drop me a pm and I'd be happy to answer them.
BTW..be very careful on flipping properties. Even here in Phoenix it's starting to cool off, and I know a few people who have a few houses all done and just sitting on the market. Just go in with eyes wide open, and be realistic on your selling time. It used to be 2 hours, now it's more like 2 months...
Good luck!!

[Adam2006]

The houses in my neighborhood are $800,000-$1.2 million, just wish I had one instead of my little ol' apartment.

[British Pilot]

Be careful with "flipping" or being a landlord, it is a wonderful concept but in the real world can be a great deal more difficult.

The "dumps" that you want to fix up will probably be in less desirable areas, which in a rental scenario typically brings with it lower income tenants, with a greater propensity for missed rent checks, lease breaking and so on if you choose to rent. If you chose to sell, you will need to continue paying the mortgage until it sells, and you will often underestimate timescales in both scenarios.

It's extremely rare to find a dump in a highly desirable area where your returns would likely be greater. There are too many people looking for this same property, including the real estate brokers who won't list it and instead will snap it up themselves.

My friend has two places in a reasonable part of Eastern Massachusetts and after over a year of infrequent and often non-payment of rent, and frequent court visits, he is close to selling one at or just below break even, and can't sell the second because the current tenants have been less than cooperative with the brokers.
Even so, in the last year, the market has softened a little here, and even though downtown Boston housing is still holding it's own, the suburbs are suffering a little. This comes back to equity too, the $30k in equity he thought he had in the Summer of last year, is quickly dwindling.

I too have personal experience of this, I came out on top, but for several months had to make the mortgage payments on that property as well as my primary residence. On my salary at the time, that wasn't too too much of a problem. With a first year FO salary, impossible.

I have found for every one story of someone making money, there is someone losing, and someone else breaking even for several months hard work. In my mind, if I am earning $25k a year, I want to reduce any potential risk to my earnings, and so speculative real estate investment is best avoided.

[CG8055]

This is defenitely a good idea...I decided on this a few months ago...Get my lisence as a real estate agent then begin my training as a pilot...as the veterans say, better have something else to fall back on..

[SeanD]

Getting into home sales is good but may I suggest getting into appraisals. Im telling you this job pays big time and there is a demand for it not to mention job security. The market is in a drop right now and people are going to start getting paranoid and wanting to sell or at least see what they can sell the home for. I have been looking into taking the appraisal course for some part time $$$ pay for Vegas appraisers ranges between 60k to 200k . Something to think about if your wanting to get into real-estate.

[Dreampilot]

hey can you tell me a little about this apprasial course. What type of course is it and how can you make some money in it. I had no idea they made that kind of money.

[British Pilot]

Originally Posted by SeanD

Getting into home sales is good but may I suggest getting into appraisals. Im telling you this job pays big time and there is a demand for it not to mention job security. The market is in a drop right now and people are going to start getting paranoid and wanting to sell or at least see what they can sell the home for. I have been looking into taking the appraisal course for some part time $$$ pay for Vegas appraisers ranges between 60k to 200k . Something to think about if your wanting to get into real-estate.

That's a brilliant idea. Whether people are buying because the market is buoyant, or re-financing to try and lower their rate in any other conditions, you are still a required component.

The appraiser who visited my place when I bought charged me $350 for about 30 minutes work. Competition is fairly significant since typically a bank has a long list of appraisers in the area, but after all we are talking about PT work...

[iflyhi22002]

I second the appraisal thought....That's what I'm looking into also..
Good money, not alot of work usually.

[SeanD]

Originally Posted by iflyhi22002

I second the appraisal thought....That's what I'm looking into also..
Good money, not alot of work usually.

Network will other real-estate agents and watch the money come in. The course is a little more demanding on the legal side of things depending on what state your in. Some states require a bank approved appraiser others go with the buyers/sellers agents choice.

[SeanD]

Originally Posted by Dreampilot

hey can you tell me a little about this apprasial course. What type of course is it and how can you make some money in it. I had no idea they made that kind of money.

You can take these courses anywhere. Google search in your area. I know a lot of community colleges offer the classes (4-6 months long). The money is usually a set cost depending on how the market is doing. Supply and demand, the more demand for a home in your area the more money you make as an appraiser. For example here in Vegas we had a boom about 3 years ago and appraisers banked 3 figures for that year.

[fly22]

Originally Posted by CRoper

I think that is a great idea! That's actually what I am planning on doing once I get to a regional.
I think the hardest part of doing this would be finding a broker that would be flexible enough with you and your airline career.
I really haven't done a lot of research on the field yet, since I am still focusing on my CFI and builing time. But I don't see any reason why real estate wouldn't work on the side.

Start doing it now. In doing so you are more free in your ability to pick regionals and still live a decent life. You will also have a better clientel list.

There are ton of brokers out there that are super flexible on schedule. Hey if you are making money then you are making them money. 1 is more than 0.

[fly22]

There is a lot of money to make in house flipping if you are in the right market but it has to be a super hot market.

There is a lot of money to loose in house flipping if you are in the wrong market.

[British Pilot]

Originally Posted by fly22

There is a lot of money to make in house flipping if you are in the right market but it has to be a super hot market.

There is a lot of money to loose in house flipping if you are in the wrong market.

....and there are far more wrong markets than super hot ones. Boston is hot in places, but you need big money to play with, or lose, as the case may be.

Some banks require a bank approved appraiser, and the one the buyer prefers may well be on the list, if not he can be added. At least in the state of Massachusetts he can, not sure about other states.

[wheelsup]

RE: appriasers - there is at least one member on here who is doing it, I received guidence from him and he was very helpful.

Just as an FYI, in all states except Cali, you are an apprentice appraiser until you've "logged' 2000 hours of appraisal time under your belt. You log this time by finding a mentor, which is harder than it sounds. There has to be someone willing to sign off on your stuff, and as they do this, you will become their competition, which is why people are leary of doing it. I was told to expect to be an apprentice appraiser for about 2-4 years, during that time you earn approximately 1/3-1/2 of the appraisal cost. Once you are an appraiser, you have to build your customer base - it requries a lot of networking, etc.

There is some upfront costs as well - the actual "online" course will run you about $700-$800, then you have to purchase the software that the appraisals are done in, that's about $1000.

Also, I believe some of the markets are a bit corrupt, where as a realtor needs to appraise a house for $XXX,XXX and hires an appraiser he/she knows will give them that figure.

I'm just trying to add in what I came across in terms of doing this job. As far as the housing market cooling off, there won't be more home sales as evidenced in slowing amount of home sales and lower mortage applications. IMO, the entire housing industry will begin to slow, and people will leave the industry (I read an article in USA Today about that same thing actually).

[JaceTheAce]

Originally Posted by wheelsup

RE: appriasers - there is at least one member on here who is doing it, I received guidence from him and he was very helpful.

I think that was me How is this panning out for you?

[dakovich]

we are always thinking about trying to flip a house here in town. plenty of pretty decent homes owned by the city because of tax problems, etc...even homes in good areas. found one today that someone else is trying to flip...house only cost them $30,000...selling for $130,000 now. nice area, foreclosed property, great find. only problem is we come to find the last owner got caught molesting little kids and killed himself in the house.

[wheelsup]

Originally Posted by JaceTheAce

I think that was me How is this panning out for you?

I ended up talking to the "mentor" quite a while. I was still on reserve at that point, and was flying quite a bit. In addition the next month I got a line and worked about 18 days, and recovered the others. We also got 3 more web design contracts, so needless to say it went on the back burner.

This month I wished I had stepped up to the plate because I'll be at home 22 days. Ah well. I'm hoping to shoot the guy another email saying I'm still interested and motivated more than ever to get the 'license' in 30 days. We'll see how that pans out .

And re:foreclosures. I think there will be a rash of them as interest rates rise on these interest only mortages and gas prices continue to pinch consumers wallets. I saw an article that said foreclosures in my area had risen 40% in the past quarter. Scary...