HOW TO FLIP HOUSES WITH NO MONEY

Question

I have been talking with a few mentors and keep getting told different things, go figure! My beginning strategy was to wholesale houses until I built enough capital to do some buy and holds or buy and flip/rehab. I quickly found that to be a successful wholesaler you need quite a bit of money for continuous marketing as well as knowledge in repair cost etc. My question is how does one get into flipping houses with little startup money? Just go hard money lender and private lender to cover rehab costs? Or are there more options? Any advice would be helpful! Happy Investing.

Ty Murray · Answer

That No or little money narrative is just for people who don't know any better. You need money to do this, either yours or someone else's.

Jay Hinrichs · Answer

well at least you realized that its not possible with NO money.if you have no personal funds to do this you need to partner with a money partner.if you are too inexperienced to attract a money partner.. then you may want to get your RE license and go to work on a top producer team and get paid to learn.Or you may want to get a JOB with a big flipping or building company to learn that end and create and save your dollars so you can become an investor...

Jason Hirko · Answer

@Jay Hinrichs I guess if you fund one once in a while, you can claim you aren't running a scam?!

Charles Trussell · Answer

@Jay Hinrichs Thanks for the advice I will definitely be partnering with another investor that I have "bird dogged" deals for. I was just curious as to a few different creative strategies.undefined

Tom S. · Answer

@Charles Trussell I started off with little startup money. Found a partner willing to put up the downpayment and closing costs, and I put the loan in my name. We split everything 50/50 after. Fairly straight forward and worked fine for us.Good luck!- Tom

Rebecca Belnap · Answer

A good place to start is with your own home. If you don't own a house, start with a no money down program and buy something that can allow you to add equity by fixing it up. You stay in it for "more than half a year" and then you can stay in it longer and get a HELOC, sell it for a profit, or rent it. It doesn't hurt to get your real estate license like @Jay Hinrichs said so profit isn't all eaten up in costs. If you already have a home and don't want to move, do some affordable improvements to maximize the value and get a HELOC. To really flip homes effectively, you need 20% down and repair costs of the home. Partners can work for this, but if you aren't careful, partners and Hard money lenders earn most of it and you would earn more if you were working for McDonalds. When you are cash poor, you have to pass on a lot of good deals in your search for the GREAT deal.

Jay Hinrichs · Answer

@Jason Hirko I think that is an accurate statement.. did you ever catch Remington financial on American greed... ( not comparing DHM to them of course)they had offices in PHX I think then maybe Minneapolis I remember talking to them years ago on a deal and they just approved me to easily I thought.. something were folks with experience would question it.. but those starting out or really really want it and have blinders on would not.scam went like this.. OK send us docs we will give it a free look.. 3 days later free look is over send us 10k for in depth due diligence.. then string borrower along until they go away.Some lady was trying to develop a parcel in Clear Lake CA.. ( I happen to have first hand knowledge of this as I am from there) that parcel could never be developed.. they led her on and she lost her EM deposit her 10k to these guys and her dream.. she went ballistic and some how got a retired FBI agent to help her.bottom line 25 years in business they could only document 3 loans that Remington had actually done and they brought in over 40 million dollars over those years.. so now were just bereft with the little time scammer.. the guy who pops on BP with a phoney company and promises private lenders at 3 % 100% ltv the newbies and beginners on BP think they hit the jack pot only to get scammed out of 500 to 1000 bucks before they too realize its a fake.One guy posted HEY I NEED DEALS I just got approved for 20 million... LOL in looking at his background never did a deal.. of course he was connned

Elbert D. · Answer

There is no way to do almost anything in real estate. Wholesaling and flips both require you to put up some type of money. Even with hard money you still have to put something up. Or you can partner with a mentor and he will put the funds up and maybe have a buyer as well and you do the rest of the work such as analysis or helping clean up or whatever else is needed. So if you don't have money. Your going have to have the time to atleast become an asset to somebody and do some type of work. But be careful there are so many people that get in real estate to and become greedy or scam you. It also depends on your market. Because IMO flips are very hard. But things that are worth doing doing require patience so find your niche and good luck!

Jason Hirko · Answer

Hopefully this isn't the common answer... No HML that plans to be in business tomorrow will give a loan to someone with no money and no experience. Best thing to do is find/develop a way that you add value to experienced investors, and find people who will let you work with them while you gain experience, then find someone willing to partner on a deal. So many people skip the first step.

Thomas C. Barrage · Answer

Charles,You may want to look into a new website "HouseFlipCapital.com." You may have to use Google to find it because it is still being worked into the other search engines. The website has a very inexpensive House Flipper ($100.00/year) membership. I believe that the more house flippers that sign up the better, because that will draw in investors and wholesalers where the house flippers are located. You may be able to find other people in your area who are also new to the industry. If you all work together, you may start business relationships that move all of you forward. You may just find the relationships you need to start flipping much sooner that you thought possible.Best wishes,Tom BarrageHouse Flip Capital, LLC