Where to go from here...

[Marcus Peck]

Hello, My name is Marcus. My brother and I started an LLC with the purpose of real estate investing. This has been an idea for about a year and we have been learning about it since then. Just recently we decided to narrow it down to flipping houses and we have not made any moves on deals because we do not have the money for it. I only have a couple grand and my brother as well. It's hard to get an investment loan with such a small down payment. So I picked up a full time job on top of my part time job to be able to save up. But I know it's still going to take some time so I just wanted to know if there are any short cuts in financing that could possibly be done without any recent success in flipping home? Also on top of that an idea that I had for that was me moving out of my parents house and into a home that has equity, live in it for about a year, fix it up and possibly take out that equity and put it into our first actual investment home under the company's name. Let me know what you guys think. Thank you.

[Abel Curiel]

Originally posted by @Marcus Peck:

Hello, My name is Marcus. My brother and I started an LLC with the purpose of real estate investing. This has been an idea for about a year and we have been learning about it since then. Just recently we decided to narrow it down to flipping houses and we have not made any moves on deals because we do not have the money for it. I only have a couple grand and my brother as well. It's hard to get an investment loan with such a small down payment. So I picked up a full time job on top of my part time job to be able to save up. But I know it's still going to take some time so I just wanted to know if there are any short cuts in financing that could possibly be done without any recent success in flipping home? Also on top of that an idea that I had for that was me moving out of my parents house and into a home that has equity, live in it for about a year, fix it up and possibly take out that equity and put it into our first actual investment home under the company's name. Let me know what you guys think. Thank you.

With a low down payment and no experience, your best bet would likely be to house hack. 

Financing is tightening up across the board making it more difficult to obtain FHA, conventional and hard money loans. To get a clearer idea of what your options are, speak with a lender to review yours and your brother's finances. Once you have a clearer idea about your financing options, you'll be able to narrow down an approach (house-hacking, BRRRR strategy, flipping, etc).

Best of luck to you moving forward!

Abel