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Updated about 8 years ago,
Do I understand the flipping process correctly?
Hello all!
I've been scouring the forums recently and I would like to get started in investment with a 'fix and flip' strategy. That way I can build equity to do SFR buy and holds later on. The first step I would take is to find a good wholesaler to shoot me some deals within driving distance of my home in Santa Clarita, CA. This will be my first flip, so I'd like to keep purchase price at $150-200k. Once a wholesaler gives me a deal, I drive out to it with a contractor to estimate repairs and work with a real estate agent to determine 90 day comp sales to determine ARV. If I like it, I pull the trigger on the deal with cash and a traditional loan. I would also need to have enough cash to rehab on my own or work with a hard lender. Once rehab is done, go through the agent to sell. Here are my questions:
- Is that roughly the process to flip a home?
- For those of you who flip, do you work with anyone to help with design? Or do you just eyeball it?
- If I have about 100k cash and 800+ credit score, should I go traditional? Or is it better to leverage hard money?
- With the 100k cash that I have, is the 150-200k a safe price range to enter?
- How would I find a market that suits my needs? Where do I start with the research? I keep seeing everyone say "do research" but I don't even know what to start looking for.
- Would my money go further doing fix and flips out of state with a BP partner?
Would appreciate any insight you all have. Thanks so much!