How would I start a house flipping business?

Question

I want to start my own house flipping business how would i do that any advice? I know you have to have a good credit. How much money would you need to start?

Answer 1

Get a time machine and go back 5 years when it made sense to do this.

Have you not heard the old saying "buy low, sell high?"
You're planning on doing the exact opposite!
Here's another one you may not have heard:
"A fool and his money soon part ways"

Answer 2

Start A House Flipping Business

Answer 3

I'm sorry to say this, but unless you have parental help or a financial backer you probably will not be able to qualify for any loans to buy these properties. Investments properties are harder to purchase now and require high credit scores, strong assets, 10-20% down payment, plus you'll need at least a 2 yr employment history illustrating that you earn enough to pay for the properties. Also, this is a horrible market to start flipping in, no matter where you live. Housing prices are only falling so although you may be able to purchase cheap, by the time you flip them the price will have dropped some more and you'll earn very little. Plus, you'll have to leave them on the market longer. If you're dedicated to this try and work with someone who's been flipping for a while. You should be able to make contacts with investors as a realtor. Work with someone experienced for a few flips to see what it's like and the market conditions, then try to branch out on your own.

Answer 4

Well, there is no better time to buy than now. If you have the credit and the money, snatch up as many properties as you can. This is indeed a buyers market. With that being said here is your caviat: IT IS A BUYERS MARKET! That menas, you should not flip your properties immediately, because you will not make a profit. I would suggest, purchasing properties that have little to no defects in them, you know, properties that you can slap a coat of paint on and then stick a tenant in. You want to rent them out immediately and make a profit on them so that you can make a profit while riding out this market. Also, when the market turns, it is going to be FLOODED with houses and your will not differentiate, so you will have to ride that out too. But int hat time, you will be preparing the home for flip; painting, upgrading appliances, adding on porches, etc. So when the market settles, and the flood will settle faster, especially with FHA about to bring out their NEW FHA loan, which will be structured for a higher loan amount (currently at 213,750 maximum; they want to be at the 417,350, with is our high for a conforming loan. Probably won't get that high but will reach the 300's.) first time home buyers and such will be purchasing homes if not quickly, they will begin doing it steadily. So the thing you need is credit, money and PATIENCE. Also, you should try to buy in the midwest; proerty value has been maintained in the midwest and portions of the South. Also, I would buy smart; Try to find a street where there are several bungalows/ houses/ apartments/ two family flats on the street and see if you can't buy the lot of them. By doing this, you can dominate that area, and when it comes time to sell, you will basically be the one setting the price range on that street; in essence, your houses will sell according to what YOU sold your last one for. Get it? Good, now go buy some homes! OO! Almost forgot, try holding your property for two years if you want to avoid Capital Gain which can be from about 15 to 18 percent!

Answer 5

Right now, you should not be considering doing anything with regard to 'flipping houses'. The real estate market is very unstable, and you may well find yourself owning one or more properties which you cannot sell at the price you need to make a profit.

It's very much a buyer market, and you could find yourself in a financial bind if you invest in a property, repair it to standards and attempt to sell.

Answer 6

Buy a really cheap, crappy, run-down house then fix it up and sell it for an outrageous amount.

You'd need enough money for the initial purchase and the renovations as well as enough to pay the mortgage until you sell it.

Some people live in the house while they're renovating to save on expenses. Depends on how much renovations are needed.

Can be a financially risky business. Especially if you have no experience and don't know what you're doing and have lots of money to back you up. Not as lucrative now either because days of sub-prime loans and a "hot" real estate market are gone. Haven't you been watching the news about the housing slump and slow sales?

Answer 7

It really depends on the market that you're in. If you want to flip in an affluent area, you're going to need a LOT of start up capitol. I own an investment house in Scranton, PA, and my initial investment was about $10k.

Good luck, it looks like a great business to be in!

Answer 8

Be very careful - housing prices are falling, and one of the reasons is that many people overextended themselves trying to "flip" houses.

Answer 9

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Answer 10

In some markets, seasoned flippers are still succeeding, but to be perfectly honesty, if you’re asking how to get started with this, now isn’t the right time for you. The current market is not kind to those who are learning the process.