Bay Area House Flipping

[Jun Zhao]

Hi all,

I have been researching and educating myself on the house flipping business here in the bay area, CA. I'm fascinated by how one can leverage funds from another source and be able to create wealth for all parties involved in the game. The bay area certainly has one of the most expensive markets and my current savings is no where close for even hard money loan.. I would love to get started in house flipping now but it seems a little unrealistic.

Did anyone have similar dilemma? And what do you recommend?

Thanks in advance,

Jun

[Darius Ogloza]

The nub of the dilemma is that you need to prove you can handle the complexity of a flip before you can realistically interest third-party financing sources in your endeavors.  If you cannot self-finance, your best bet will be to look to those around you whose trust is in your abilities/potential - family, friends - to provide you with debt financing (i.e. loans that you promise to pay back with interest) as opposed to equity (which is riskier).  A surprising number of people have cash buried in CD's paying 0.2% who would gladly turn over a few dollars to you in exchange for the promise of 5% or more.  Partnering is usually the best method to get started.