How can I flip in a house? I dont work and I am stay home mom so I have no money?

Question

but if the banks know I am going to flip a home woldnt that make it easier to get a loan, working or not?
I ahve already helped my common law husband with renovating his home for the last 2 years so I have some experience in this...need advice or info.

I live in edmonton canada

Answer 1

With no money, you might want to flip contracts on homes. Basically you find an undervalued property that can either be flipped with no effort or with some rehab, then you use an assignable purchase option contract to control the property. You then find a buyer for the property and sell/assign your contract to them for a profit.

This method requires no credit and very little money (I spend no more than a dollar). It's just a lot of work to find a property, hunt down the owner and find a buyer. Worst case scenario, you lost your time and your dollar.

Regards

Answer 2

Buying and flipping homes is a tricky business; you have to know your market very well and be able to find properties that are well below market value. The major problem with foreclosures, handyman specials are that they are in such bad condition that you have to have all cash to purchase them because they are in such disrepair and cannot qualify for bank financing. your only hope is to use the equity in your home to purchase all cash and fund the renovations yourself. Anyone that says you can flip a house with no money out of pocket is not telling you the truth. If you find a property that just needs cosmetic work and qualifies for bank financing then you have to make sure you purchase it a good price (highly unlikely maybe 10% at best below market and your closing costs are 6%, realtor fees when you sell are about 4%, you have to renovate and pay a mortgage; you are not going to make any money on this deal). You can get 100% financing plus closing costs but you need $$$ for renovations and mortgage payments; if you don't have any money then this is not possible

Answer 3

A lot depends on your credit and assests. You can go stated income but if you have non that would be fraud. Do you have equity in your current home? If so you should already have at least a HELOC. Don't leave your equity in your home not working for you. While you are fixing up the home and or trying to sell it you still have to make payments on the loan. The bank doesn't want stuck with the home in case it doens't sell or there is more to repair than would make it profitable to sell. If the housing market where you live slow it could be many months to sell after you fix it up. If you have the credit and can prove that you can make the payments on the loan there are places you can get the money. Even if it's hard money but the home would have to be worth enough to get a private lender to let you borrow the money and the interest rate will not be low.

Answer 4

I couldnt tell you exactly how to do this- but I would put out a good warning- right now many people are losing alot of money from having bought and remodeled houses, and they are just sitting vacant without buyers. Unless oyur in an exceptional market, the majority of the US housing markets have really cooled down. The whole point in flipping is finding a diamond in the rough kind of house- one you can get a fast loan on, remodel, and sell quickly before payments begin on the house. If the area market is not moving well, or you run into problems, you are on the hook for the mortgage until you can sell it. Its risky, and no, the banks wont make it easier if you are trying to flip or resell.

Answer 5

If you tell a bank you want to flip a house, it is unlikely they will give you a mortgage, as they make their money over a long term. If you are not going to have it long, then they won't make any money.

You can flip a house if do a lease option. This requires a seller to lease it to you with an option to purchase. You would want the majority of the rent money to go to the option tough, instead of the lease. It is possible to in effect get a loan for 1% or 2% APY. Not impossible, but rare. Still, nothing ventured nothing gained.

Just be sure the option says, to you "and/or assigns", and it allows you to transfer the option. That way, you don't actually have to have ownership to sell it.

The best way to flip a property though, is to purchase it and live in it while fixing it up. After 2 years, you get an exemption on the capital gains and income tax you would have to pay otherwise.

Finally, get married. Common law? Let's see, you fix his house, and he gets the credit benefit. WADDA DEAL!

If you want to have some credit of your own, you either have to get a job and establish it or claim your part of his credit. You can do that, IF YOU ARE OR WERE MARRIED.

Some people seem to want to prove Darwin's theory of evolution. (Shaking head in disbelief)

Good Luck.