Funding your first flip

[Sharnell James]

I have been talking and getting advice from many people and all I hear is I should figure out exactly what I want to get into...well right now I don't want to buy rental properties !! even though I do want to buy rental properties soon but not right now I would like to get into flips...I have been contemplating going to the bank to get a loan because some people say I should go try to get a personal loan or get a small business loan and use that to buy and flip my first home so I've been thinking about it but I'm not really sure yet...money is a little tight since I moved states and have 3 small kids don't make it easier...people also been telling me to just jump right in but that's hard when your funds are low !! What are ideas y'all have for funding your 1st flip ?? How did y'all go about doing it ??

[Tony McCargar]

Fix and Flips are geographically driven. There are markets that have as yet recovered from the collapse of real estate however a market such as mine,( resort, high 2nd & 3rd homes), never fell off more than 5-8%. That being said you need to know your market!!! I have been in housing industry for 40 years and the key is to find something that is below market and needs fixing. Which brings up abilities. You must be fairly adept at fixing, replacing and occasionally rebuilding. The best areas for recapturing your investment are kitchens, baths, doors and windows. Paint and wallpaper is good but don't expect a 1000% return on that. You need to have the ability to asses the property that is in need of repair if not you'll need a competent contractor that you can trust, maybe a friend that you could buy he and his wife a really nice dinner for looking at the home. Don't think a home inspection is going to give you what you want or need. Oh, and yes.....location, location , location