Would like some information on flipping houses

[Peter Schafer]

How can I begin flipping houses? I've read a fair amount of Real Estate books, saved over $12,000.00 and increased my credit score to 740. I feel I am ready from a financial perspective. I would buy the house, rehab, lease out and then do a cash out refinance so I have a little money coming in every month and could use the properties as a source of collateral for future loans. The way I see it is, I need a lender and a great GC. I hear great General Contractors are hard to come by. And my ideal lender would offer 100% LTV. So I guess my main questions would be, does anyone have a lender that could provide loans in the Iowa area at 100% LTV, where to find a great GC, and is there anybody else I would need on my team? Other than agents? Thank you

[Will Fraser]

Welcome to the Biggerpockets forums, @Peter Schafer!  Good work saving up, getting your credit score up, and studying up.

You're thinking well about the GC and the lender. Lenders are VERY against 100% LTV loans these days (not just during COVID, but before that, too). On the initial purchase you'll have to use some funds to buy, but the target for a nice-and-tidy deal would be to have the lender do a 70% LTV cash-out refinance, which is possible, but will also require a bit of a fight.

Other than a good lender and a good GC you'll need deals.  These can come from agents, your own hustle, or quasi-agents (like wholesalers or other people that largely do what an agent does but with low or no regulation).  Wherever it comes from, you've GOT to have a deal to be able to use the dream team you assembled.  So, I'd recommend cultivating some deal sources alongside your GC and lender.

[Peter Schafer]

@Will Fraser thank you!

[Darson Grantham]

@Peter Schafer I'm from the Des Moines market and there is a lot of interest in these types of BRRR property options. Message me and I'll send you a list of banks to start conversations with and also 3-5 GC's that can give you some ideas on what rehab costs will be.

Just this morning I spoke to a GC that wanted to help an investor and share returns. 

Happy to help in anything you need, just message me. 

[Nicholas Wallraff]

What Market are you in? I can give you some contacts in the Cedar Rapids Area if needed. I know of some lenders that will do up to 100% financing if the ARV will support it (They will finance 100% of the project, up to 80% of the after repair value).

[Peter Schafer]

@Nicholas Wallraff thank you so much Nick! I’m actually in the Bettendorf area so I’m less than an hour from you. I’ll shoot you a message

[Grace Griffin]

@Peter Schafer, I am a wholesaler in the Quad Cities. Besides finding you properties, I can be a resource on some GCs, investor friendly agents, etc! Let’s connect!

[Peter Schafer]

@Grace Griffin Well that’s great because I’m from Bettendorf

[Tara Kinney]

I am an investor in the Quad Cities Area.  If you have light rehab or turnkey wholesale deals, please reach out to me.

[Chance Millett]

I’m an investor in the QuadCities and would love to connect with like minded investors and would also love any wholesale deals!

[Peter Schafer]

@Tara Kinney hello, Tara! I just sent you a friend request. Let’s exchange numbers!