I want to get into the real estate business and flip houses. how do I get started without any money?

Question

It has always been a dream of mine to get into the business of renovating houses and resaling them for a profit. I am not sure of where to began nor do I have much money. Is it possible for me to do this under these circumstances.

Answer 1

If you had a house (or whatever of value), would you sell it to someone "who has no money"?

It is not probable, but, actually not absolutely impossible.

Examine your own mind. What circumstances and what characteristics would have to be met for you to deal with someone in your present state? Somehow, it would have to be advantageous for all involved. Everybody and every deal is different, you must bring to the table whatever it takes to make it a good deal for everyone.

No one can fully judge your abilities, ambition, commitment and work ethic from the question you posed. You must evaluate yourself (definitely with the input of people who know you), but if you are looking for quick, easy and no risk, then you are better off buying a lotto ticket. The odds are about the same in the long run. If you really are able and willing to work, then a decent living came be made. Good luck always helps.

Answer 2

Miss Thing,

You will definately need a strong cash position. I recommend you start a group of like minded investors like yourself. Each of you make a contribution of "X" amount. With the help of a local realtor, find a property you can all invest in, and once the work is done, sell for a profit.

I do recommend someone in the group have a real estate license which can benefit during the buying and selling as their commission can be used to reinvest in other properties.

Answer 3

If you renovate (rehab) and flip, you'll need money for fixing up the place and holding cost. To flip houses without money or credit, you will need to use an assignable purchase option contract to tie up property at a low price and then assign that contract to an investor for an option fee.

It can be done and you can make money even in this market if you can determine value.

Regards

In response to Jill B.:
I still make money in California's market whether or not the property has any equity.

Answer 4

first get a real-estate license. I'm sure there are going to be a lot of ignorant answers to this question saying you cannot do this, ignore them!

-Get real estate license
-find a broker to work under who charges minimum commission ($500 bucks per transaction is fair for Q&A of a file)
-find a distressed property and locate the owner
-have offer written up for not greater than 70% of market value with seller credit of up to 5% of offer price. ex: home is worth 200k per market comparables, offer 140k plus a seller credit of $7000.00 for non-recurring closing costs. Seller realizes a net of 133k on sale of property and gets a tax break for covering closing costs.


You now have $7k plus whatever rebate you made on the loan to fix up the property, market it and sell it, where you'll make another commission on the sale.

Answer 5

You definatly need money in the bank. Even if you get a house with no down payment,you have to fix it up and pay the mortgage ,while trying to sell it too. Even if you bought it cash,youd still need money to fix it up, and possible closing and lawyer fees. Good luck. Working on houses is a hard deal.

Answer 6

Somehow you need to have loot for fixing the place up, i've heard you can get cash back at closing and crap like that, but ive never been able to do it.....if you find a piece of property with some sort of problem, you might be able to make some sort of deal.

Answer 7

This is the worst time to get into the speculative R/E market...stay out of it for now unless you live in Austin, Texas, Baltimore and other such desirable areas which are projected to continue experiencing some growth...

Answer 8

the best way to get started is to go to real estate school...get your license and earn commissions on your own sales....this will offset the price in your favor...plus you will learn of all the tricks or the trade when shopping for a mortgage....think of the tuition as a small investment that has potential for large returns.....good luck to you

Answer 9

Not sure, but............

Keep in mind...........


Times and markets are changing!

In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???

This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.

From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!

With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!

For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:

http://sandiegofsbo.blogspot.com

http://www.brokerforyou.com/blogger/index.html

http://www.brokerforyou.com

http://www.san-diego-for-sale-by-owner.com
http://www.brokerforyou.com/san-diego-real-estate-sales.html

http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us
http://www.la-jolla-real-estate.info
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://www.poway-real-estate.info
http://www.del-mar-real-estate.info
http://www.la-jolla-real-estate.info
http://www.los-angeles-real-estate-brokers.com
http://www.san-jose-real-estate-brokers.com
http://www.orange-county-real-estate-brokers.com
http://www.san-francisco-real-estate-brokers.com
http://www.sacramento-real-estate-broker.com

Answer 10

You have to have money in the bank. There is no way around it with investment properties. You usually need 6 months PITI.