All Forum Posts by: John Jabson

I don't understand how some of you flip several homes per year and using contractors the entire time. I know some of you don't even do any physical labor yourselves. You just buy and manage the flip.

How is this done repeatedly? You have to get amazing deals in order to make up for the cost of a contractor which is easily 3x the cost of materials.

Without a big difference between the value of the home and sale price, there is no possible way to pay for contractors like this. Give me some thoughts on this.

The line of credit would pay for the down payment. My 15K cash would pay for part of the repairs. Any remaining repairs would require the Lowe's credit card. That's what I'm getting at.

What would you say if I considered using a line of credit for the down payment of a 50,000 house and then using my own cash AND a Lowe's credit card? The lowe's credit card doesn't kick in the interest until 6 months. It is 25% APR after that. That's rough. Is it worth the risk of doing that? I would hope I could do a general rehab and sale within 6 months if I aimed to do so.

I do not have any other money other than 15K and Callum is right, I want a more hands-on approach. Callum-I have already tried the bank route and it's not working. I need to find a private party. Is the best option to start talking to people around town? Maybe I can find somebody who is willing to "invest" 25K at a 15% payback or something. Where else can you make $3750 on 25K in a few months? I know it's risky but I'd do it if I had 25K. Let me know your thoughts on that. I'm really clueless so I'm wondering where you guys would look for private investors and how you would go about it.

If you were starting out with 15,000 cash and you wanted to flip homes, what steps would you take first? 15K is obviously not enough to flip an entire home.

This is what I'm starting with right now. I have done alot of contracting work (I'm not an expert on anything-I can do generally good work but would need to hire somebody for precise carpentry in certain circumstances).

I work a regular 8-4 job and live in a rural area. Homes can range from 20K (or lower for trash) to 200,000. Average first time home buyers pay between 60 and 100 in our area.