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Updated over 8 years ago on . Most recent reply

HELP!
Can anyone break down in a process of steps the buy and flip methodology?
My situation: My uncle buys and flips houses and is starting to mentor me but their is a huge language barrier. Meaning I only speak English and he barely speaks English. He does no money down buy and flips, and he has a hard money lender who trusts him dearly. I have a full time job so I'm not always around him. I'm very passionate about getting involved with him but I only know the basics to the buy and flip process and I want to have more knowledge about it before I jump in. This hard money lender gives him cash up to 100,000 for a property and asks for 12% interest after it sells. I'm now taking classes to get my RE license just to get my foot in the door. I know this is a bunch of ramble but this is my situation and I want to know what should I do as far as AFTERI get my license? Should I work for and real estate investor company? Should I work for a regular agency? How do I strategically find good properties to small and medium sized houses to help my uncle with his business and myself as well? I want my uncle to take me serious and I'm willing to learn and put in the work.
Anyone's opinion is welcome,
Alexander
Most Popular Reply

Quick breakdown.
Hard money loan of 100k
-usually 3-5 points up front (3-5% cash you give the lender for the loan.
-usually 6-12 month term @12% apt
-you pay interest only each month (100k @ 12% is 12k) (12k/12months...you pay the lender 1000/month until you return his initial loan of 100k
So your 100k loan over 6 months will cost you 3-5k upfront and 6k in interest payments.
If you can flip the house in 3 months you only owe 3k in interest for the loan