New to flipping homes (hoping for advice)

[Andrew McIntyre]

I would like to get into flipping homes. I currently live in Omaha, NE and and would like to do this here.
I have a few flips while I lived in San Francisco
My background is architecture and I have work for over a decade in design build firms.
I have been struggling trying to find work and feel with my design background, my ability to do a lot of the work on my own to fix up houses that I would possibly do well. I also have the opportunity to generate financial backing from relatives that would allow me to get maybe two house going at once without going to the bank.
So my questions are :
1- Can I earn an regular income if I did most of the work for upgrading these homes? I would also at as the GC Being the GC would I take on a 15% charge?
(what about doing the framing hauling, etc- Do I charge for this" or is this in the profit?
2-What type of profits should be giving to the lender?(I know this can vary but is there a typical range for borrowing from friendlies. 8%, 10%, 15%
3- What is the topical hold and your time for flipping?
4- Should I do a for sale by owner or use a Realtor?

Any guidance would be greatly appreciated.
thanks
Andrew

[J Scott]

There are no right or wrong answers to your questions, but most serious investors will have an opinion. Here's mine:

1. You probably could get a regular income by doing most of the work yourself. But, you could probably make a lot more by hiring the work out to qualified contractors. Doing all the work yourself will take significantly more time, will likely result in significantly lower quality and will ultimately have a huge impact on your bottom line. If you want to earn money as a contractor, become a contractor. If you want to earn money as an investor/rehabber, hire good contractors to do the work.

2. The lender should get compensated for risk. I generally pay my lenders 10-12% interest, but they view me as low risk, given that I have a decent amount of experience and can personally guaranty the loan. Sounds like you don't have a whole lot of interest or cash reserves, so it's reasonable to assume a typical lender would ask for more. That said, if they really like you, maybe they'll take a chance on you... :)

3. I average about 100 days from purchase to sale. But, 4-5 months is probably more typical for most rehabbers (and what I was averaging early on in my career).

4. I would definitely use a real estate agent. Unless you know about staging, marketing, negotiating, dealing with closings, dealing with inspectors/appraisers/brokers/underwriters, etc. A great listing agent will earn you more than she charges you.