How do you start Flipping Houses?
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- Can you really make alot of money flipping houses?
- How do you start Flipping Houses?
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- Flipping houses in the milwaukee area?
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3 Responses to “How do you start Flipping Houses?”
August 18th, 2008 at 8:45 pm
To start you need a giant spatula.
August 18th, 2008 at 11:27 pm
Flipping houses can be done with any bank that will do investment loans but you will typically have to put down about 10% and have a higher interest rate. If you do not already own a home you can get around the investor rates and requirements and it can be deemed as your Primary residence. I must warn you that FLIPPING HOUSES IS VERY VERY RISKY especially if you are borrowing money to do it. CASH is the only safe way to buy and flip houses because if you use cash then there is no risk involved. With cash if the house does not sell all you have to do is just wait till the market comes back and then there is no loss. Way too many people have bought houses that they could not afford in hopes of dumping a few thousand into them and then flipping them and making a ton of money only to find out that sweet deal of a house was not such a great deal after all. THen they are stuck paying a big house payment somthing that is like a HUGH ******* BLACK HOLE in their wallet. Take it from someone who has been there and done it. I have made good money and I have been caught with my pants down also so be very careful. I would challenge you to find someone who has been doing flips for more than ten year and has been making a profit doing it.. there are almost none out there.. It’s like playing russian rulet soner or later the bullet goes into your brain and then it is financially over..
August 20th, 2008 at 10:25 am
I live in Vegas, too!!!
The first thing I would recommend is find a house (preferably on a hill), get a really big shovel under one corner and step on it!!!
C’mon!!! That was funny!!! Okay, it would’ve been funny if everyone else hadn’t already cracked the same joke…
There’s really no “short” answer to this question.
The first thing I can recommend is look for other investors who are BUYERS!!! If you don’t have someone to buy the house, you’ll be hurting when you find it. You probably wanna get as many buyers as you can find. This will help when you buy your first property. Call those signs that say “We Buy Houses” and ask them what they’re looking for and find it.
When you first get started, you won’t be owning ANYTHING. You don’t want to!!! You’re gonna just get the houses under contract and sell the contracts. I know it sounds confusing at first, but it’s REALLY easy. In fact I know a guy who’s looking for someone to find properties for him. He, like most GOOD investors, will tell you how to do it with little risk and help you on your way.
Once you’ve got your feet wet and built up some capital, you can start flipping houses. Again, first things first, find BUYERS!!! Look for people who are looking for houses. Get as many as you can. Talk to people you know. Run ads on Craig’s List. Just Get BUYERS!!! Now while you’re looking for buyers, you’re still looking for houses. When you find that one GREAT deal, you call all of your buyers, put ads on Craig’s List and run an ad in the paper that says something like this:
For Sale Buy Own No Money Down
4bed/2.5bath (or whatever it is)
Owner will carry 20% (OAC)
Open house This Sat 11a to 1p
Please RSVP @ 702-555-1212 (or whatever your number is, or you can do a recorded message that discribes the house.)
On Saturday, you turn up to the house at 10 or 10:30, put some cookies in the over, have a sign-in sheet on the kitchen counter and have everyone just walk through the house. You’ll know how many people will turn up, because they RSVP’d.
At 1 o’clock, you kick everyone out, lock up and go home with your NEW list of buyers. You start calling your list and when you find the people you like, you do a credit check on them to make sure they’re squeakie and you go to contract.
Now, on the “owner will carry” part, you’re gonna to do a 5 year Interest only loan at 10% with a balloon payment at the end of the 5th year. The reason you do this is because you’ll be making monthly income on the property even though you don’t own it!!! At the end of the 5 years, or when the people refinance, (which ever comes first) they cash you out!!!
You’re probably wondering, “Well that’s great, buy how do I buy the property in the first place???” Well, if you remember from the first paragraph, you’re gonna start out doing this working with other investors. So, by this time, you’ll know what to look for and what to stay away from. You’re not gonna buy any bad deals.
As for the financing: You’ll wanna find a GOOD Hard Money Lender. The reason is, a good hard money lender doesn’t usually look at your credit and income and that. They look at the deal. If you have a good deal, 9 times out of 10, you can get it financed by a HML. In case you don’t know, I have to warn you that HML’s have HORRIBLE rates!!! I’m talkin’ 10% interest is GOOD!!! The reason is, they deal with investors for the most part and they don’t have they don’t their money loaned out for as long as regular banks do.
So, to answer your question…If you wanna start flipping houses, find a buyer and find a house that’s far enough below market value to make a good little profit and get a purchase contract on it. Again, if you find a GOOD investor to work with, they’ll walk you through the process.
I hope this helps!!!
Good luck to you!!!
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