How to Fund Your Fix & Flips Even If New To Real Estate

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A lot of people get started in real estate investing doing "Fix 'N Flips.

It takes lots of money though and the best source of "first money" is to "Joint Venture" with someone who already has the dough. Since you have only a twinkle of riches in your eyes over the vast sums you'll make in the real estate Fix 'N Flip biz, you need someone with experience to go with your youthful enthusiasm.

So, why is this? A lot of first timers lose a lot of money starting out. It's the riskiest and highest taxed side of the investing. I'll outline the costs in a moment.

What makes for a good Joint Venture project?

1. Someone with money, that you trust. Parents, Siblings, Doctors, Dentists, Businessmen, School Buddies and so forth. Put the agreement in writing drawn up by an attorney. 

2. How should the work load be distributed? The one with the money provides the money and guidance. The one without the money does the marketing, finding the property to flip, working with contractors, working with real estate agents, etc. This is how you learn the tricks of the trade and you need to know that anyway, so it's good "on the job training".

3. Costs include but are not limited to: marketing, acquisition, mortgage payments during the holding period, power, water, taxes, insurance, closing, title, paying contractors, materials, HOA fees, cleaning, dumpsters, demo (obviously the fun part that you will willing volunteer to do), "oops factor" (misjudged costs), tools, break-ins, stolen tools, stolen materials, an alarm system now that you've been broken into, new windows since they broke the windows to get in, and your time.

Most flips run about 6 months from finding the property to fixing it up, to getting a buyer, to closing, to getting a check.

If you are still excited after seeing the facts, let me know and I'll post more along with some horror stories. ;-)

Yes, it can be very,very profitable . . . if you know what you are doing.