flipping without capital?

Question

I just spoke with a real estate broker who also rehabs and rents. He told me that at least in ny if I don't have capital It's going to be very hard to get into investing and flipping foreclosures without it. From what I had been told before this was that I can use a hard money lender to do it but from what this guy was saying it's not likely going to work. Does anyone have experience with flipping foreclosures in ny. Is there a way I can get into investing if I don't have money. I was led to believe that I could

Tim G. · Answer

Real estate investing is hard.

So what? Hustle.

People find a way to make it, each person has to sort out the best route for them. This isn't easy, it will kick your butt yet we all still come back for more.

Find out what your skill, what your able to bring to the table to add value and you will make it happen. This forum is littered with people who showed up, expected it all handed to them and never made it. It also has many who fought hard, came here with little and begun an empire. The difference was their level of motivation and their inability to quit.

Go have some fun, learn, network and see how you can add value to get paid!

Jay Hinrichs · Answer

@Leslie Phelan

true foreclosure buying and flipping is capital intensive to the extreme...IE buying at court house steps auctions rehabbing and reselling.

I like your idea to work for a company that does this and learn the ropes and make contacts and get paid to learn.

YOu may want to get a RE license as well..

Leslie Phelan · Answer

thanks for the support and positive words of encourgement. It's needed every now and then. I felt defeated kind of after I spoke to that broker

Nathan Paisley · Answer

Inbestows! :)

IMO get a re license to understand the basics of re and maybe work under that broker... Creating a close relationship, who knows maybe he see's how hard you're working and becomes your money lender.

Whatever you do just keep pushing for what it is you want. Most if not all will tell you, you can't or won't be able to this or that. In the end, it's your decisions you make now that create your results later.

Leslie Phelan · Answer

So I think I am going to do like previously said, work for someone to really learn and get some hands on experience and I was also thinking find some inbestows to bird dog for.

Leslie Phelan · Answer

@Eric Michaels I attended a workshop for the flipping formula. They told us about the different ways to invest and how to figure out what you would bid on a property and I guess the basics of it. They did say that you have to put time and work into it but also made it sound like not having money wasn't that big of a deal. They said for those of us who don't have money, to use a hard money lender to do a flip. Go to home depot to find at least 3 contractors. Get at least 5 RE agents and a forclosure specialist to give you the list of foreclosures and then start making 2 to 3 bids a day. Sounds easy enough right? Well its not

Matt C. · Answer

@Leslie Phelan I couldn't agree more with what @Jay Hinrichs said. There is no better way to learn REI than to work 40+ hours/week for an investor. You will begin to eat/sleep real estate investments. Just become a sponge and soak up as much knowledge as possible.

Eric M. · Answer

My first thought when I read your OP was who "led you to believe you could do it with no money?"  A guru?

That said, it actually can be done, just not hard money.  You just have to do JV's with money partners.  The issue that I think you will have is that you not only have no money, you have no experience.  With one of those you make a good JV partner, with neither, it is a big risk for the partner.

With no money and no experience, the only real way to do it is to find a partner who personally knows you and wants to help you by funding you.

Pete T. · Answer

There are ways to get into RE w/ limited capital, but I think flipping would be risky bc there are a lot of things that can come up that you have to be able to pay for.

Gary Marcotte · Answer

Yes Leslie, hard money folks want you to have some skin in the game, so you have a vested interest in seeing the project through, instead of just walking away if things go bad.  Particularly if you have no experience, they generally will charge higher interest and pts as well.  It's not easy getting started...I know it all too well.  I have only done two rehabs and I at least had the luxury of borrowing from my 401k to get me rolling.  But still the hard money lender I used would only lend at 60% ARV and they funded the construction in arrears.  But I will say that after only two projects (both successful) they are willing to lend up to 65% on the next one and now they are comfortable with how I run my numbers and finish my projects.  I am just telling you this because I want you to try to look at the glass half full.  I don't know if you have access to any retirement accts or family/friends that may want a piece of the action as well.  And if the deal is a DEAL then a hard money person will know it.  They may be willing to be a little more creative and structure the deal in a way that will fund 100% but they take half of the profits as well.  There are ways to get it started but it will take a lot of looking, offers and the ability to overcome some rejection in the beginning.

Best of luck to you.

Gary

flipping without capital?

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