House flipping ?

Question

I am interested in the house flipping industry and would like to give it a try. Does anyone know of a good company to get the initial capital or of anyone looking to partner with me ? I have been in the construction industry my entire life. My great grandfather, my grandfather, my dad and his six brothers are all builders. I have been self employed since high school in the construction industry. So I believe I can make a very good profit on a flip by cutting the remodeling cost down tremendously. Any help or offers would be greatly appreciated.

Thanks

Answer 1

When you're getting started in house flipping, before you can invest your own capital in materials, construction loans are usually the best way to go. Trouble is, they're pretty heavy on paperwork, you don't get all the money right away, and they take 6 weeks to get done, and that's on a quick schedule.

Answer 2

Yes you have to have money to make money. So basically buy house and remodel. Often just a fresh coat of paint, a new counter, a few appliances and fixing the yard up is all that is needed.

But you are going to need credit. And usually you would pay contracters. But with family it will get complicated. So they do work but what is in it for them? So when you turn around and make money how do you calculate their share with materials and such? But you want to reinvest it to be able to buy another house at a better rate? Then regardless of who you use you have to show insuarnce and bonding for permits and such.

All I'm saying it is a great way to make money but family and money rarely mix so be carefull. Plus you have to look at the market and mortgage rates.

Personally if you are young just buy a house that you are going to live in. Fix it up and have people help you over time. After 5 years you get a $250,000 tax exemption (500 if married) on the sale. Yes there is the tax and capital gains thing when flipping. If you are renting now the money you spend now goes in your pocket. Then later when you sell your credit will be excellent and you will have some capital to invest. Then you will get better rates even on when you need to borrow to redo other properties.

It's a long view kind of thing. That is the key to success.

Answer 3

Get a copy of William Bronchcicks book on Flipping. He is an real estate investor and attorney. This is the best book on flipping available. Also read Ron LeGrand's book on Quick Turning Properties.

Good Luck

Answer 4

you don't need that much money, if you are all builders you already have all the tools and experience you need. you can probably finance a property with only 10% down if you have good credit, put all the building supplies you need on a credit card or get other family members to loan you some money to get started. once you do a couple you will have enough money in your pocket to do anything

Answer 5

Make sure you have a good lawyer and a partner who makes money by flipping houses, not getting paid to show others how to flip houses for fun and profit.

http://tlc.discovery.com/fansites/flipthathouse/stepbystep/index.html