MY HUSBAND WANTS TO START FLIPPING HOMES . HE HAS THE KNOWLEDGE AND KNOW ALL ABOUT THE CONSTRUCTION WORLD . THE ONLY THING HE LACKS AT THIS MOMENT IS CREDIT AND MONEY TO START
PLEASE ANY ADVICE FROM AN INVESTOR ON HOW TO DO THAT WE LIVE IN HOUSTON TX THANK YOU
2007-09-04 05:29:40 · 14 answers · asked by sux 2 in Business & Finance ➔ Renting & Real Estate
He's been watching too many shows on TLC and A&E. If you haven't been keeping up on current events, there is a credit crunch in the US due the sub-prime mortages. He won't get any money to start without good credit.
2007-09-04 05:37:21 · answer #1 · answered by tanzer360 5 · 2⤊ 1⤋
Your husband will need to find someone who has the faith in him to back him financially and be willing to assume the financial risk.
It may be extremely difficult, if not impossible, to find an investor depending on how many friends in the industry your husband has that could partner with him. Usually this partner would be an individual who would be willing to provide the money and desire to co-manage the flip, but does not want to be involved with the physical construction and detail from day to day (they will want very frequent updates).
The investor would have to be convinced of your husband's experience and ability to complete the projection within budget and on schedule. How much split on any potential profit the investor would ask in return would be highly variable, but always in favor of the investor.
If your husband does not have a friend who can be such a partner, beware, beware! There are individuals out there just waiting to scam people without available credit and no money down.
He shouldn't give up his dream, however, and I do wish him good luck in all his endeavors.
2007-09-04 06:40:32 · answer #2 · answered by Bella 2 · 0⤊ 0⤋
Knowing construction is only 1/2 the equation ,
You Must get totally educated on the finance / credit / money / costs issues to succeed .
Otherwise you are just a laborer playing outside your ball game .
Get your credit in good order and save up 20% down for a property , meanwhile , educate yourself on the RE market .
Good Luck !
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2007-09-04 05:40:32 · answer #3 · answered by kate 7 · 2⤊ 0⤋
He needs a money and credit partner, and a partner that knows real estate well. He doesn't have half of the equation, he has one-third.
NO bank or lender will take a no money in situation on an investment, re-hab flip...why would they take 100% of the risk for anyone on something this risky?
2007-09-08 00:23:44 · answer #4 · answered by walkinandrockin 3 · 0⤊ 0⤋
He cant on his own without either. However if he hooks up with a contractor that does that type of work, after awhile he will be able to earn enough and you work on your credit score. then you can do it.
There is no quick and easy fix here. You need both available money and good credit to flip homes so get that in order first.
2007-09-04 05:43:11 · answer #5 · answered by Bob D 6 · 1⤊ 0⤋
In today's world it's better to have good credit than money in the bank. Tell him to start rebuilding his credit. Having no credit can be crucial in realstate since when a good house to flip comes around only good credit will get you a loan through a lender.
2007-09-04 05:41:11 · answer #6 · answered by Dan D Man 2 · 0⤊ 0⤋
Build up your credit and save up some money.
The reason why I am saying this is if you buy a house, with no money, you must pay the mortgage, taxes, insurance, PMI insurance (from no down payment) and closing costs.
Then you must pay for supplies and repairs on the house.
Simply put, you are not financially ready for such an expensive, time consuming, risky business.
2007-09-04 05:39:52 · answer #7 · answered by snwbm 4 · 2⤊ 0⤋
With lacking credit or money, you will have to find some one who wants to front the money, and then will want at lease 1/2 of any moneys made.
2007-09-04 05:37:23 · answer #8 · answered by cfb193 5 · 2⤊ 0⤋
Fix his credit and save money first.
Hosues are HUGE invenstments, and he's already proven to the banks that he can't handle money well - who is gonna give him a loan? Not gonna happen. If he's serious about it, he'll do what it takes to fix his lousy credit.
2007-09-04 05:58:34 · answer #9 · answered by Roland'sMommy 6 · 0⤊ 0⤋
Find a lender that makes loans to people with no credit and no money. Everything else will fall into place.
2007-09-04 17:25:18 · answer #10 · answered by divepassion 2 · 0⤊ 1⤋