Rehabbing homes newbie

[Paola Vera]

Hey guys! I've been doing a ton of research over the last year, and lately, I have felt much more comfortable moving towards the taking-action part of investing. Im already working towards putting together a business plan in order to use a VA loan to house hack for a year while we do small renovations to force appreciation on an outdated duplex or quad; we are mostly just waiting to fix our credit a bit before we put that action into play (we, me and my husband). In the long run, the goal is to do a 1031 exchange over and over again until we acquire more units/an apartment building for passive income.

I am, however, also very interested in rehabbing and flipping homes. I have done a lot of research on this as well because personally, it's a dream of mine to get into the fix and flip business. I, unfortunately, do not know anyone who has experience with this. Although I am a newbie, I have read many many blog posts from the forums here on bigger pockets, I have read a couple of books like Rich Dad, Poor Dad, and I have also started to listen to other investors' videos/podcasts on YouTube and attending some seminars. I'm really just looking to gain hands on experience, more knowledge, and hopefully build healthy relationships along the way. I am in the part of my research where I am trying to figure out my best options for funding a fix and flip. I'm aware that there are hard money lenders, FHA options, private money lenders, etc., but any suggestions, guidance, tips, referrals, etc. for figuring out the best little-to-no-money down option. I thought about seller financing, but I wasn't too sure that was an option if you were looking to have the actual renovation expenses included in the financing. If the seller financing is an option, is it possible to sell the home while the seller is technically still the "bank" in order to pay off whatever is owed to the seller?

[Greg Dickerson]

Originally posted by @Paola Vera:

Hey guys! I've been doing a ton of research over the last year, and lately, I have felt much more comfortable moving towards the taking-action part of investing. Im already working towards putting together a business plan in order to use a VA loan to house hack for a year while we do small renovations to force appreciation on an outdated duplex or quad; we are mostly just waiting to fix our credit a bit before we put that action into play (we, me and my husband). In the long run, the goal is to do a 1031 exchange over and over again until we acquire more units/an apartment building for passive income.

I am, however, also very interested in rehabbing and flipping homes. I have done a lot of research on this as well because personally, it's a dream of mine to get into the fix and flip business. I, unfortunately, do not know anyone who has experience with this. Although I am a newbie, I have read many many blog posts from the forums here on bigger pockets, I have read a couple of books like Rich Dad, Poor Dad, and I have also started to listen to other investors' videos/podcasts on YouTube and attending some seminars. I'm really just looking to gain hands on experience, more knowledge, and hopefully build healthy relationships along the way. I am in the part of my research where I am trying to figure out my best options for funding a fix and flip. I'm aware that there are hard money lenders, FHA options, private money lenders, etc., but any suggestions, guidance, tips, referrals, etc. for figuring out the best little-to-no-money down option. I thought about seller financing, but I wasn't too sure that was an option if you were looking to have the actual renovation expenses included in the financing. If the seller financing is an option, is it possible to sell the home while the seller is technically still the "bank" in order to pay off whatever is owed to the seller?

You do not want to use hard money for flips until you have done several and know exactly what you're doing. Hard money is very expensive and will eat up your profits and put you in the whole fast. The best bet is bank financing or private lenders.

Yes you can sell an owner financed deal anytime and pay them off. The owner will not finance repairs only the purchase of the property.