Beginner House Flipping Questions

[Carl Dispoto]

After reading multiple investing strategies via BP books and blog posts, it feels like house flipping might be the best entry for me for a number of reasons.

It won’t conflict with any work I may do as a realtor with my brokerage, it’ll combine my interests in investing and building, and I won’t have to be a landlord, which at the moment I have no interest in being.

I have a number of questions though on how to start on this journey so any feedback would be helpful.

1. Where do I get the money?

I’m currently collecting NY unemployment while doing freelance work and starting my career as a realtor. I have a savings account and a somewhat substantial 401k. I was intending on taking a 401k withdrawal to pay off a little debt and cover some living expenses so I can focus on my new career. Do I take out a little more to start investing?

2. Do I start myself or join someone else?

Is a better idea to start looking for properties and acquire them myself or find/team up with an experienced house flipper and invest the money with them, assist in the process to learn how it’s done, and collect a return on my investment?

3. Do I use separate funds?

When house flipping, would I keep the funds in a separate account from the joint checking I share with my wife for bills, expenses an regular paychecks?

4. Can I use my realtor skills to help flippers find houses?

It seems as if it would be beneficial as a realtor to connect with house flippers to find good opportunities in the market early. Call the flipper, show them the property, make the sale. You earn the commission, they get an investment to flip ….. everybody wins.

Does anyone have experience doing this?

I’m sure I’ll have tons more questions as I keep learning so thanks for bearing with me