I want flip a house.?

Question

There are a few propeties that are being auctioned at the courthouse that I know I can flip and make a huge profit. Here's the catch. I have very little money to start with, I don't want to take real estate classes right now and I'm trying to avoid taking out a bank loan. What are the steps I need to take to make this work for me.

Answer 1

OKAY NOW FOR A REAL ANSWER!!!!!
First of all if you want to flip a house, you will need money, which you don't have YET. Go around and look for some PRIVATE INVESTORS, which may be a bunch of friends who will share a percentage of the profit. Next make sure that you know what your doing and know how to fix a house, or you'll need to hire a contractor which will cost you more money, then use a experienced real estate agent to sell it rather then try selling it yourself even if you have taken courses. They have the experience and the contacts already in place that you don't. Now your profits won't be much now, but after awhile, you'll saved up enough money to pay yourself, but don't. Keep your private investors, that way if something terrible happens, you all loose a little instead of you loosing allot. You don't have to trust your investors either, unless they want to be apart of the flipping, then make sure you can work with them or your in for some headaches!!!!!

Answer 2

Get ready to best answer me...First no real estate classses needed...Don't waste your time...I am assuming you don't own any real estate in the first place...If you do and have equity that will cover the purchase of a home ..Thats one way....but..im guessing that's not a go....ok here's what you do...These homes usally don't get priced to high...So you'll need a downpayment at auction,not more then 10% or there about for most situations...So lets say its 20000 total,10% at auction..thats 2000...you have 18000 left....You can take out a personal loan for the rest...you have about a month or so until first payment is due..So get the house flipped as soon as posible..Ok if a loan from a bank is not posible...Then you need to find someone like me to help with the finacing...Oh yea a huge profit is unlikely..just making some is more likely and you'll want to move the place...

Answer 3

You don't need real estate classes to buy an auctioned house. If you're buying a property from a bank, they will not release it unless you can pay the balance in full through cash or a mortgage. You can't avoid taking out a bank loan. The bank doesn't care that you plan on flipping it.

Answer 4

no one needs a real estate license in order to buy and sell a house. in fact, i can tell you very honestly that to get a license it will cost you money that you may have to borrow. in fact, i can honestly say that your best bet is not to get into the real estate sales business at all, but to get the money from someone to put a down payment onto the parcel, along with the financial qualifications to get a mortgage.

but...this is where you would benefit getting a salesperson's license and working in a real estate office, waiting to make even one closing to reimburse you the many dollars you have already put out just to be in the biz:

what you gain when you work for a broker is market knowledge. that means that after a couple of years, you will ALWAYS know what areas are worth your investment dollars. the reason it's important to know this is because anyone in their right mind buys a house for only 3 reasons:

location, location, location!

when you say that there are a "few" properties being auctioned, do you know what amenities each physical location offers? do you know if the area is on a skid (which normally lasts about 15+ years after the beginning of the skid), or if it's on the up and up? do you know how fast the area is appreciating and why it is?

this is very important when it comes to a flip. because:

you come up with x number of dollars just to buy it. to flip it, you probably have to come up with y number of dollars to improve it to the point whereby you can sell it. usually these dollars come from loans and mortgages. interest is paid on loans. so, how long must you hold the house, paying out principal and interest and other expenses like homeowner's insurance and real estate taxes, and so much money back on every loan you take to improve the house...until the time that it sells? may i ask you if you have knowledge what a house with z number of bedrooms and a number of baths in what neighborhood will sell for more, or give you a real headache, waiting and waiting to sell it?

be careful. learn the markets first. there will always be auctions. there will always be properties up for sale. and we will have about 3 more years left for this unusual buyer's market, so how can you go wrong?

Answer 5

who's kidding who.
if the house on the court house steps is xxx and you only have x; how do you expect to get the balance to the court collector without a loan.
Are you dreaming or is there something missing in your Q?

Its a good biz, but you have to have the bread, period, on the spot!

Answer 6

that is a very risky business. There is a lot of hidden problems that can eat away your plan & money very fast. Unless you are an experienced carpenter I would advise you to stay away.

Answer 7

id loan it to you if i knew you better. If you know you could flip them, then get a down payment from the buyers, and use it to buy the property.

Answer 8

Tell someone who has money and ask for a cut or finders fee. Its unlikely that they are such a good deal.