Gotta Have Money to Make Money

[Paul Cordero]

I am interested in getting started in REI and I am tired of floating with the idea. I feel like I need to just do it and stop procrastinating. I, like many others, watch Flip this House, and Flip that house on a weekly basis. I recently saw an episode where two Mortgage brokers did thier first flip in SoCal. These guys gave me hope that if they could get their flip done, anyone can. They cut so many corners and still managed to sell a half-assed rehab for a decent profit.

I am a mortgage broker, and I know a fair share about the lending side of Real Estate but I seem to hit the same road block when it comes to getting started.

My only holdback right now is funds. I am trying to find out how much capital and reserves I should start out with for my first Rehab. I need to make it my goal to get to this amount, but I need a solid percentage figure to set the bar. I have some questions for the experienced REIs.

How much money did you get started with and what type of flip?
How much should I have in reserves to get started?
How can I finance 100% and still get money to finance the rehab?

I would have no problem getting approved for 100% financing right now, but without any capital, it seems like a rehab is out of the question.

Thanks for any replies,