Have no money to put down. Own my own house now, but do not want to take HELOC loan to start. Property I'm looking at is located in WI. Strong university market, average turn time, etc. Cosmetic and minor rehab needed. Looking for low cost funding from WI, or contiguous states. CA, FL and TX lenders not acceptable. Properties in those markets are a joke. Can any professionals help?
2006-10-15 15:27:28 · 7 answers · asked by rookie flipper 2 in Business & Finance ➔ Renting & Real Estate
Low cost funding is over. 17 straight interest rate hikes from the Fed put an end to that.
2006-10-15 15:40:29 · answer #1 · answered by szydkids 5 · 1⤊ 1⤋
The smartest way to fund this is a HELOC. This is a revolving line, so you only pay on what you owe. As the project progresses, you can take money out against your line as needed. When you sell the home, you turn around and pay the HELOC's balance off. In the meantime, you get to write off your interest.
Oh, and to "Kingstub", fixing up a home and selling it is NOT a scumbag way of making money... It does several good things like bringing up the neighborhood and increasing home values in it...
2006-10-16 05:16:11 · answer #2 · answered by Justin 3 · 0⤊ 0⤋
i thing the best idea to start your flipping houses business is to take equity line of credit, because even you will buy your property with 100% financing , you still need cash to remodel this house and you don't want to be short of cash to hold you back with your quick flip.
you also will have tax deduction from your equity and even interest rates are not that great now- you still better off with your 2nd mortgage, than personal loans or credit cards. after you will complete your first flip, you will pay off your equity and have money ready if you will spot another good flip.
i am loan officer in il and if you need any assistance, you can e-mail to me.
2006-10-15 16:00:29 · answer #3 · answered by bianca 4 · 0⤊ 0⤋
You need to learn the ropes first. Do not make the mistake many do in that you start without a clue. A solid real estate network will allow you to watch projects unfold and give you the opportunity to jump in when you feel comfortable. You would have the ability to use your own personal resources within a project, spreading the risk between the members of the network. The best approach is to allow a seasoned investor (better yet, many investors) who knows the business become involved in your first project! Do not get discouraged, there are ways to invest in real estate within all market types, you simply need to gather your tools and learn the correct terms to use when you ask questions. Best Of Luck.
2016-05-22 05:20:05 · answer #4 · answered by Christie 4 · 0⤊ 0⤋
If you are worried about taking a home equity out on your house, if you can get a good deal on your flip house, maybe you can take a home equity out on it so you have the money to make the improvements.
2006-10-15 15:36:27 · answer #5 · answered by humorme! 3 · 0⤊ 0⤋
House "flipping" is a scumbag way of making money.
2006-10-16 01:38:33 · answer #6 · answered by kingstubborn 6 · 0⤊ 0⤋
I maybe to help with this contact me asap
2006-10-17 10:47:28 · answer #7 · answered by jrfern05 2 · 0⤊ 0⤋