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51569665 No.51569665 [Reply] [Original]

My boomer dad doesnt really have retirement savings. He has some cash tho (less than $50,000). He's been watching house flipping videos on youtube and he's gotten excited about it thinking it's his way to get saved for retiremeny in the next 3 years.

His plan is to take out a heloc on our house (he has like $150k equity), buy a fixer-upper house, renovate it, get a mortgage on it, and then rent it out for a few years before selling it.

I told him that now is not a good time because prices are high and interest rates are high, but he doesnt care. He keeps yelling at me to do research for him and to help him flip houses since im a neet. I wouldnt mind helping him with a business, but im worried hes gonna lose all the equity he put into our house. He seems really delusional and fixated on doing this like when a guy discovers crypto for the first time. Note: he has bipolar, and he gets heavily fixated on his impulses for weeks at a time.

So is now a bad time to take out a heloc and do real estate investing? If so, pls give reasons i can explain to my dad.

>> No.51569707

If prices drop hard in your area he could buy a cheap property cash with 150k. I'm assuming he isn't in california or some other overpriced hellhole. That could be feasible within the next 6-12 months. Do not let him get a fucking mortgage.

>> No.51569739

>>51569665
right now is the worst time in HISTORY to buy real estate, but the next 18-24 months will probably be the best

>> No.51569745

>>51569665
You are a putrid parasite just like your disgusting cancerous boomer dad and you will die alone sad hated and in pain like you deserve 4chan parasite

>> No.51569761

>>51569707
Yeah we're in southeast US. Are prices expected to drop in the next year? He is fixated on buying a house RIGHT NOW, but maybe i can convince him to wait. Also, why shouldnt he get a mortgage?

>> No.51569839

>>51569739
I dont know anything about real estate, but my dad claims that distressed houses that need renovation arent affected by price swings in the market. Are distressed houses also expected to go down in value in the next 18-24 months?

>> No.51569871

>>51569745
Yeah i know, anon. Sorry for not working. Maybe i will try to get a job this year. I just wanna stop my dad from losing everything he has.

>> No.51569936

>>51569839
yes
powell literally said housing market WILL have a correction yesterday
dont catch that knife yet

>> No.51570605

>>51569936
Alright thanks anon

>> No.51570756

>>51569936

Because powell wants you to panic sell and reduce inflation, so he is FUDing you retards into panic selling and hoarding fiat so the government can print more.

>>51569665
>Is now a bad time to get into real estate

NO. It is NEVER a bad time to buy real assets in the medium to long term. The only thing is in the short term you may be able to have gotten a better deal. But in the medium to long term any durable asset with real scarcity will appreciate over fiat.

But make sure you are buying actually scarce real estate and not just piece of a new development in the middle of the desert, or a condo or some shit.

>> No.51570877

>>51570756
>It is NEVER a bad time to buy real assets
lol, are you a realtor or something? this shit could take 10 years to hit a new high

>> No.51571358
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51571358

>>51569665
just show him this picture and ask him what happens next

>> No.51571489

>>51570877
Did you completely disregard that he said medium to long term? House prices WILL continue to rise. The largest drop in price on houses was 20% in the last 90 years.

>> No.51571829

>>51569665
Sounds like you really care about him. I would double down on refusing to help. First, because you are unqualified. It is possible to get counseling and advice for the kinds of schemes he wants to do. That qualified advice would be from someone who knows the markets.

I'm no expert either, but I think if I were you, I might hire either a real estate agent to consult (one who is willing to consult only, that is, not upsell or otherwise act as buyer's agent) and a homebuilder / remodeler who knows the market your dad is considering, and approach them for consult, on their time, and willing to pay a consulting fee, for an hour each, to help educate on these choices.

And I would imagine the third opinion would be an actual fiduciary who can provide an informed opinion on the structure of any type of investment, on the personal financial outlook and plan.

Your municipality local development office may have free seminars or consulting, and in any case, will be the office where all the various steps to permit and so forth must be taken anyway, so those relationships should be cultivated.

In the meantime, there is no reason to prevent dad from getting into this, but in order to do it well, it seems to me and I'm no expert, you have to be willing to look and look and figure and research until you find the right project. Those skills, of sorting through fields of options, and inspecting prospects, costs little.

An accounting consultation, with the facts of his total financial picture and current accounting, even a private audit from someone who probably sees a lot of people like your dad getting into a market like this, can provide impartial advice as a fiduciary.

Any enthusiasm is a good thing. Retirees need stuff to do, learning things is good, having some occupation is good, so let that happen. Best you can do is remind him about a fool and his money, and provide whatever guardrails you can.

>> No.51572443

>>51569665
Seeing that you are a NEET and your current care taker is about to go broke. I would look at getting a job and move out.

>> No.51572759

>>51569665
If your dad is set on flipping. Here is the plan of action.
Step One
>Delay
>That house needs to bunch work
>It is over priced
>The bones are no good
>blacks live next door
Step One and half
>Low ball every house you want to buy
>Ask for 50k under and demand closing cost and rate buy downs
>Tell your dad all the pros do this.
>You should write 50 offers before you guys buy a house
>This also is a good way of delaying
Step Three
>Do the work yourself
>Only hire plumbers and electricians
>and make their work easy and fast by getting shit out of the way
Step Four
>House Hack
>You tell your dad you'll manage it as a rental
>you live in the house and get a bunch of roommates who pay the rent
>Obviously pay your day for the time and money he put into the house
>Get some sort of job flipping burgers or something
Step Five
>wait for the market to star on a up swing
>Sell the house and start over