Rehab investing basics

[Deion Alaei]

Hello,

I wanted to ask the bigger pockets community a question about rehabbing properties.

I've never thought about getting into that area of real estate, and truth be told, I think I'm familiar with the process but I'm not 100% sure.

Can anyone explain to me the basics and process of an investor buying a property to rehab and flip it - from the first step to the last?

I'm very curious specifically about the costs of it.

For example, do they pay out of pocket to buy the property and fix it or do they get financing - like from hard money lenders?

Do they pay out of pocket for escrow fees, holding costs, etc.

Between the point an investor buys a property to the point they officially flip it, what are the costs that specifically come out of their pockets as opposed to the costs that they can get financed?

do hard money lenders have strict rules about ones personal income/credit?

I'm mostly confused on the costs/finance part of the process, as you can tell.

Overall though, the more detailed you can be in explaining the process overall, the more helpful because I'm always trying to learn as much as I can - especially in real estate.

Also, I'd love to hear from you the pros and cons, the risks and rewards, would you recommend somebody get in that side of the business and tips/warnings for when they do, etc.

Thank you everybody.