Flipping Houses

The Ultimate Guide to Flipping a Property with No Money

Expertise: Flipping Houses, Personal Development, Real Estate Investing Basics, Mortgages & Creative Financing
105 Articles Written

One of the questions that I continually get asked is: “how do I flip houses with no money?”

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People see all the TV shows that show people flipping houses with no money and they really want to know if it actually can be done! The problem is that many of those shows just make it all seem so easy.

Truth be told, “the gurus” have it half right. You can learn how to flip houses with no money down. In fact, I do it all the time. On just about every house flip I do, I have minimal, if any cash of my own in the deal.

Is it easier to flip houses if you have money of your own?  It definitely is – especially when you’re just starting out. But there are many ways to flip houses with no money using some funding sources you might not have thought about.

Which Comes First, The Deal or the Money?

money-iconIn many cases, new investors just don’t know whether to get the money first or get the deals first. This is another question that seems to come up a lot.

The short answer is that there is really no right or wrong one on this.  If you get the money first and have no deals then you need to find a deal real quick. Likewise, if you find a good deal, but don’t have the money for it, you’ll need to get the money fast so you wont lose the deal. Realistically, you need to be working both sides of the house flipping equation, virtually all the time.

Dont let any of that get in your way. If you say you can’t do a deal without the money, then you’ll never do the deal. If you say you can’t get money without a deal, you’ll never get the money. It’s a catch-22 and a big trap for you. The bottom line is this:

Money is everywhere – you just need to go get it!

So go out and get the deals and the money at the same time. In this guide, we’ll teach you how to get the money.

The First Steps

Before we get into the how-to’s of flipping houses with no money, lets take a step back on what you should do before you start looking for money to fund your house flips.

Of course, it would be ideal if money just “came to you”. It doesn’t.  I’ve tried to raise money sitting on my couch watching TV and trust me, this approach doesn’t work. A few hundred thousand dollars doesn’t just “walk in the door”…although that would be nice if it did!

So, before you go out there and start on your quest for house flipping cash, here are a few things you should do before you get started:

  • Read: G12-Book-3-iconStart reading books and learn everything you can about house flipping. Get your education.  The fact that you are reading this right now is a very good first step. You are on one of the best platforms for learning how to invest in real estate on the planet. So good job there!  Do a Google search for “how to flip houses with no money” – you’ll find plenty of information there as well.
  • Surround: Immerse yourself with people who are doing the business and are more successful than you. Who you associate with speaks volumes about who you are. Hang out with super successful people. This success mindset will rub off on you…and they also may be great sources of capital to fund your house flips as well.
  • Study: Study your market. Get to know it as well as you possibly can. Understand the trends, the kinds of houses, the neighborhoods, the streets. Get in your car and start driving around. If you’re close, just walk it. You’ll be amazed at how much you’ll learn. Call some real estate agents on listings you see. Ask questions. Make inquiries. Get dirty. The more you know and feel your market, the better prepared you’ll be when you talk to your money people.
  • Expose: This does not mean rip off all your clothes and streak the neighborhood. What it does mean is that house flipping is a contact sport, so go out and make some contacts. In the process, you’ll need to start formulating your own all-star house flipping team. It means getting out and meeting people.
  • Think Abundance: Always be open to creative ways to come up with the money to finance your deals. Thinking abundance is the primary way to do this. To be successful in real estate investing, you can’t have a closed mind. Creativity rules the day. Yes, there are rules, but there is a tremendous amount of creativity that goes along with successful real state investing. If you shut your mind off from any new ideas, you are not thinking abundance. Always think in terms of “how can I get this deal funded?” Ask this question to yourself and you’ll find that creative ideas will all of a sudden start appearing in front of you.

The List

Although the list below is by no means all-inclusive, they may even spark ideas of your own that allow you to realize your house flipping goals without the use of your own cash. Be open to new ideas – look for other ways to expand on this list below. Although this list covers the majority of the ways to flip houses with no money, any combination of these factors can also be used to create new, creative ways to fund your flips.

Your Own “Money”

Most new investors don’t realize that there are money resources that they already have. What’s lesser known is how to flip houses with no money with resources you actually may already have at your disposal already!

I thought this was an article on how to flip houses with no money? It is. Even though the resources are your own, there is no outlay of cash on your part, which is the best part. The key is finding the money to use then to flip. If you look carefully there, there are a number of ways to do this:

  • Home Equity Loan: Using the equity in your primary residence is a very popular way to flip houses with no money. If you can leverage that money into a few deals with a private moneylender, there's no cash outlay for you as your closing costs can also be rolled into the loan as well. You can also use this method in combination with any other strategy flipping houses with no money.
  • Credit Cards: visa-credit-card-iconYou want to use these wisely and responsibly but it is an option and one that is very popular with new house flippers. As one of the most common ways to start a business, credit cards have been used in this way for years to finance all kinds of business ventures. Be careful not to over extend yourself, but credit cards can be used very effectively as a short-term source of funding.
  • Credit Lines: In addition to the methods above, when you are funding your rehab, you can use your good credit to get a line of credit with your suppliers for building materials, kitchen cabinets, flooring or any other building materials that may be needed in the house flip renovation. You may even be able to get your contractor to be paid after you sell.
  • IRAs: Did you know that you can use your own IRA money to invest in real estate? It’s called a self-directed IRA and many of the investors we use to flip houses use this method to finance many of our flips. Make sure you consult your accountant, lawyer and your financial planner before you jump in. They will be able to tell you if there are any kinds of early withdrawal penalties that need to be avoided – so make sure you check with them before you do anything. A self-directed IRA is the lesser known of IRA options in which the account owner can make active investments on behalf of the plan. To open one, an owner must hire a trustee or custodian to hold the IRA assets. That person is then responsible for administering the account and filing required documents with the IRS. Do your homework and beware that a misstep can disqualify your IRA’s tax-deferred status, forcing you to pay tax on its full value plus penalties if you’re under age 59½.

Traditional Banking

bank-iconI know what you’re saying…“Banks? Mike, have you lost your house flipping mind?”

Yes it’s true, lending is tight right now, but it is worth a shot for you – especially if you’ve been good at formulating your team and getting out and meeting people. This “meeting people” also includes bankers as well.

If you have a good relationship with your bank, this is another way to flip houses with no money. Traditional bank loans are more challenging at times, but if you have a solid business plan and fully explain to them what you are doing, many new house flippers have found great success here. Although this house flipping finance method may not happen right away, it may eventually and could be another source for getting money to fund your deals.

Outside Investors

In certain businesses you may be able to “just fake it till you make it”. Real estate is not such a business. And when you are looking for investors, you have to approach them in a certain way. And that all begins with honesty and integrity. If you don’t, word will get around and you will be labeled as someone people don’t want to do business with.

So here are a few tips when approaching outside investors:

  • Be Honest: When approaching outside investors, be honest and transparent at all times.  There’s nothing wrong with telling an investor that this is your first house flip deal.
  • Be Transparent: If you do tell them that this is your first deal (which I highly recommend) then you should be prepared to convey how serious you are about the deal.  Consider putting together an investor presentation highlighting topics such as the ARV (after repair value), soft costs and projections.  Explain the 70% Rule and show them how you expect the deal to work.
  • Get Your Facts Straight: Have all your facts and details laid out in an orderly, logical format so you can best present the opportunity.
  • Seek a Mentor/Coach: In many cases when you are just starting out, it’s a wise decision to seek out the guidance of a more experienced real estate mentor or real estate coach. This person could be a friend that you meet through a REIA meeting or even a paid coach. Although personal coaches don’t come cheaply, the right one can shorten your learning curve and the tuition you may pay can be recouped in your first deal in many cases. Most importantly, having an experienced and successful real estate investor by your side makes your opportunity pitches to investors much easier as well. You can tell the investor that you are working side by side with someone who knows how to flip a house and has successful experience doing it. This fact alone may help you in convincing some outside investors who otherwise may not be open to lending you money.

The three main kinds of outside investors and they are as follows:

  • Hard Money Lenders

Hard money lenders are people with money that lend to others at a very high interest rate and typically charge points on top of that.

These kinds of loans can be especially useful if the flip can be done in a short period of time. This is because you can typically expect to pay anywhere between 14 and 20 % with four to even six points on top of that. Some house flippers use them all the time, but in my opinion, there are better place to get your money and at better rates.

The cost of hard money lenders may be a bit restrictive for the starting house flipper, but depending on the situation, they may be useful – but there are risks to be aware of.

As an example on a $100,000 loan at 18%, if it took you 6 months to repay, your interest would be $9,000 and $5,000 for 5 points. All in, that's over $14,000 in costs. But if you factor those costs into your house flipping formulas, you shouldn't have a problem still making a good profit. In one of my more successful house flips, I funded that deal almost entirely with hard money. But because the margins were so good, the soft costs in interest were more than covered by the profit.

Chances are very good that if you hold onto the money for longer than 6 months, then you may just kiss your profits good-bye.

  • Private Money Lenders

Private money lenders are just regular people with disposable money looking to invest it. In many cases, they may not be actively looking to invest; they just have it sitting around and may be open to investing with you if they are asked. These individuals could have money in the bank, IRAs, 401Ks, mutual funds or even an abundance of equity in their home. This is money that can easily be used for real estate investing. They don’t have to be wealthy; they just have to be interested in getting a better return on their money.

In mos cases, private money lenders are much preferable to hard money lenders, largely due to the fact that you, the house flipper maintains control. You set the rules and rates…not the lender.

The real key to success is to offer them a high enough interest rate on their money to entice them to do it with you in the first place. if you can find out what they are getting for a return on some of their other investments, then you can offer something more lucrative that both ensures you stay profitable but is high enough to entice them to invest.

If you can’t think of anyone off the top of your head, then start thinking about the people you deal with every day.

  • Your doctor or dentist
  • Your attorney
  • Anyone in your neighborhood who has a successful business
  • Anyone who invests in the stock market

People are always looking to get a better deal on their investments and making money flipping houses is an extremely lucrative way to do that. When you learn how to do it, you’ll never have the need to invest your own money in the future because as soon as you turn your first successful house flip, you’ll find people coming out of the woodwork to start lending you money to get their own piece of the house flipping pie.

  • Friends and Family

Another choice is to find lenders through friends and family. Many real estate investors including “The Donald” got their start this way, so you should seriously consider it.turkey-icon This kind of money lending is tricky, however. Whenever family is involved with money lending, things can get complicated fast. If you don’t do your homework and the deal goes south, Thanksgiving dinner could be awfully uncomfortable.

I personally recommend going outside family for funding. Making good contacts is far less complicated and emotional. But if the opportunity is there, go this route but make sure you structure it formally and legally and don’t make the mistake of treating it casually. You’ll find that as soon as you turn your first successful house flipping deal, investors (including family) will suddenly appear. Nobody wants to miss out on an opportunity to make money.

Partners

When you are first starting flipping houses, an easy way to get some “house flip momentum” going is to partner up with someone. This partner could be any number of the following sources:

  • A business partner
  • A friend
  • A co-worker
  • A business owner
  • Another real estate investor
  • A neighbor
  • A family member

Although it may be tempting to form a formalized partnership with someone when first starting to flip houses, I strongly discourage this. It’s far better to do it on a deal-by-deal basis and not as a formalized partner in the business.  When you are first starting house flipping, you’ll soon find that although there are a lot of great house flipping partnerships, there are also a lot of bad ones as well – and you don’t want to be tied to any one in particular.

You can simply ask the partner for the money to finance the house flip. Explain to your partner how you’ll do everything else but the two of you will split the profits 50-50. In this way, your partner reaps the rewards while only contributing the cash and not the effort. This kind of house flipping arrangement ends up being a good deal for the both of you.

Some would say that this kind of no money arrangement really only benefits the partner because all he has at stake is the cash itself. I disagree. When you are first starting, getting 50% of something in a flip is far better than getting 100% of nothing. If you don’t partner, you may never do the deal.

If you follow the formulas for structuring house flips here on BiggerPockets, you’ll have good-sized profits usually in excess of $20,000 depending on your market. And when you’re first flipping houses, a 50% split on that kind of money, though not enormous, can certainly set you on a course to even greater profits in the future.

  • Contractor Partners

Another great kind of partnership is to form one with your general contractor.hammer-icon With this kind of structure, I have done some of my best house flips. The idea is that you raise the money to purchase the flip and assemble the entire project while the general contractor does the work at cost. The money you would have to raise for the rehab is now not needed as the contractor foots that bill. The contractor in essence becomes a source of cash for the rehab part of the flip.

There are hundreds of potential variations on that basic agreement as well. When you partner with an established contractor, talk to him about funding the whole flip as well. Perhaps he has a bank credit line or maybe access to funds of his own – or even good relationships with banks. Perhaps he has credit lines with his suppliers so he doesn't need to invest much cash as well. Maybe he knows other investors or money guys.

The possibilities are endless – and it's worth it to explore all angles here. When your structure a flip like this, it makes for an extremely motivated general contractor who is eager to get the job done and get it done right.

  • Investor Partners

As stated before, getting out there and enlarging your social networks with face to face networking is very helpful when finding investors. But some of these investors and money people could also be partners for you as well.

If you meet an investor at one of your networking meetings, keep your mind open to the possibility that not only could they lend you money, but they also could lend you expertise as well as a partner for that particular house flip. Before you do anything with them, you’ll then need to work out a solid contract for the deal.

If the investor buys in cash, this is ideal. That way you won't have to go through a bank or a lender for a loan. If they need to qualify for a loan, then this may slow down the whole house flip.

In these kinds of arrangements, you can even weave in his real estate investing connections to get the house renovated using his contacts. In many cases, his contacts can even help you to find potential buyers as well. Because the investor is so vested in the deal, he may be able to lend additional money to reap even greater profits. These additional monies, if use wisely, may be able to improve the property even more and earn you and him an even greater profit. So instead of selling the house for just $220,000 you might end up selling it for $240,000 instead.

If the investor is fairly experienced, you may need to give up more of your profit percentage. But if it helps you get your first flip under your belt, gains you some momentum and makes you a chunk of cash, it’s all worth it. Just be careful not to give up too much control and profit percent, as you do want to get paid fairly for the work you do.

Be Creative

These methods will help you to jump-start your thought process on how to flip houses with no money. Even so, there are many other ways you can squeeze out cash or defer payment until the house is sold. Deferring payment of debts sometimes is just as good as borrowing.

Think creatively, be open to suggestion and use these ideas as launching pads for other ways to find money so you can start your real estate investing career flipping houses, while doing it with very little if any of your own working capital.

Raising money is certainly one of the biggest sticking points people experience when first starting to flip houses. But the good thing is that the ways to structure a deal in real estate are literally infinite. So be open at all time to new ideas, no matter how crazy they may seem initially.

There’s really no such thing as a bad idea when brainstorming new and creative ways to fund your flips. Talk to people, bounce ideas off people, and when you do this, you’ll be amazed at how many new creative ways you can come up with to flip houses with no money on your own. Use this guide as a starting point and then let your creativity come through.

Remember: money is everywhere…you just have to go out and get it!

If you’ve made it this far, please leave a comment below and let me know what you think! I would love to hear any other strategies you’ve used to flip houses or invest in real estate with no money…leave a comment and give up the goods! 🙂

Michael LaCava is a full time real estate investor, house flipping coach and the President of Hold Em Realty located in Wareham, MA. He runs the website House Flipping School to teach new real estate investors how to flip houses and is the author of "How to Flip a House in 5 Simple Steps".

    Dale Osborn
    Replied about 7 years ago
    The One That Got Away: In the 1980’s, I had talked an individual into paying all closing costs and an additional $5000 to buy his house as he was being transferred to Germany. Got cold feet and backed out, but should have pulled the trigger on that one. Dale Reply
    Dale Osborn
    Replied about 7 years ago
    The One That Got Away: In the 1980’s, I had talked an individual into paying all closing costs and an additional $5000 to buy his house as he was being transferred to Germany. Got cold feet and backed out, but should have pulled the trigger on that one. Dale
    Mike LaCava
    Replied about 7 years ago
    That one sound tought. I have far too many myself to tell…that one hurts though. What kind of deals have you done since then? Thanks for the comment! Mike.
    Dale Osborn
    Replied about 7 years ago
    Got into apartments for about 10 years then on to MHPs.
    Mike
    Replied about 7 years ago
    Nice. Single family starter flips here, but a sometime partner of mine does MHPs exclusively and is does extremely well there. So many ways to make money in this biz.
    Jose Gonzalez
    Replied 7 months ago
    Hey Mike! I’m just starting to get into the real estate business and I am very interested in the single family starter house flips area. Can we connect through email so we can talk about it a little bit more? I want to learn more about this and what a best way than to learn from someone that is doing it. Looking forward to you response!
    Esteban
    Replied over 6 years ago
    Michael how are you bro..well am new on this thank you fpr all the information real good stuff.Like i said i really have a big question is that i have always want it to be in the real estate business but due to a felonie am not sure if i can get a state licence,my question is how can i start learning and investing on property i have save about 20,000 dlls and i wanna get on the flipping business am a handy man myself know about almost everything from installing tile to electricity,drywall etc…i just dont know anybody in this business and how to go about it can you guide me?
    Michael
    Replied over 6 years ago
    Hello Estaban, I would recommend you get the Ultimate Beginners Guide offered here at BP. You can also get my ebook which is good basic reading to get started. I would also recommend The book on flipping houses from a BP contributor Jay Scott right here on this site. At the end of this article I gave you ways to get out there to network and make contacts. I suggest you start right away especially at the local REIA meetings.
    Mike LaCava
    Replied about 7 years ago
    That one sound tought. I have far too many myself to tell…that one hurts though. What kind of deals have you done since then? Thanks for the comment! Mike.
    Esteban
    Replied over 6 years ago
    Michael how are you bro..well am new on this thank you fpr all the information real good stuff.Like i said i really have a big question is that i have always want it to be in the real estate business but due to a felonie am not sure if i can get a state licence,my question is how can i start learning and investing on property i have save about 20,000 dlls and i wanna get on the flipping business am a handy man myself know about almost everything from installing tile to electricity,drywall etc…i just dont know anybody in this business and how to go about it can you guide me?
    Jeff Brown
    Replied about 7 years ago
    Welcome Mike — Lookin’ forward to more posts.
    Mike LaCava
    Replied about 7 years ago
    Thanks for the welcome Jeff. glad to be a part of the Bigger Pockets team here! Mike
    Mike LaCava
    Replied about 7 years ago
    Thanks for the welcome Jeff. glad to be a part of the Bigger Pockets team here! Mike
    Mike LaCava
    Replied about 7 years ago
    Thanks for the welcome Jeff. glad to be a part of the Bigger Pockets team here! Mike
    Mike LaCava
    Replied about 7 years ago
    Thanks for the welcome Jeff! Glad to be a part of the Bigger Pockets team. Mike
    Brandon Turner
    Replied about 7 years ago
    Hey Mike! Great article. I love the partner method. I’d like to add- one of the best benefits of using a partner is that they can often refinance the property into a fixed mortgage if the market changes or the house won’t sell. I use partners who have good credit/job/income so that I have a rock-solid Plan B no matter what happens. I’d gladly trade 50% of my profit for the peace of mind that offers. Also,its totally possible to combine those options. For example, right now I’m about to flip a house using a partner who is going to fund the repairs but a private lender who will be funding the acquisition costs. I’ll be overseeing the project. In the end, we all win. That is the ideal business relationship. Thanks for the great article Mike! I look forward to some good stuff from you!
    Mike
    Replied about 7 years ago
    Hey Brandon, great insights and ideas there. I agree, I’d gladly exchange the peace of mind for half the profits. The market here is so heated, its not something Ive had to do as of yet, but what you mention is an excellent exit strategy. Sounds like the deal you have going right now is really interesting, you can get so creative peicing it all together which makes the business so much fun. Nice work, hope you crush it there! Thanks for the kind words on my first post…just trying to keep up with your quality stuff!
    Jason
    Replied about 7 years ago
    It just seems like 50% of the profits seems a bit high these days for a standard flip deal especially with a market inundated with “investors” and “flippers”. in your marketplace, are investors willing to give up 50% of the profits for putting up all the capital? Or do you have to offer them a preferred return?
    Michael
    Replied about 7 years ago
    HI Jason, You make a great point. Depending on your local market and what your competition is paying will some what determine where you should be. I say some what because your visibility and credibility go a long way to determine if people will do business/invest with you. There trust in you is everything. If the other “guy” is offering a higher rate or percentage of deal but he is not that well trusted then it won’t matter what he pays! I happen to do mostly note holder’s vs equity partners because I have the ability to do that. In the beginning 50% split is a great way to get started or less if your market doesn’t support that. The way I look at it, if you have none of your own money to invest and you hooked up with an investor with a lot of money & you were only getting 30% of many deals what is wrong with that. The bottom line is you have to start some where and make adjustments as you go. It is like what Brandon Turner says in his post there is no cookie cutter perfect system to follow. You must be willing to evolve and constantly improve. I know that is what I keep doing. Hope to have helped clarify that for you.
    Dan Stein
    Replied about 7 years ago
    Great article, Mike! And thanks for the free Ebook at http://houseflippingschool.com/
    Mike
    Replied about 7 years ago
    Thanks Dan! I am real excited to get this opportunity to guest blog on bigger pockets, this is an awesome site for like minded real estate investors. Hope your doing well. I did talk to my marketing team Friday and shared your comments and suggestions. Thanks again. Mike
    K Smith
    Replied about 7 years ago
    This was very informative being that I need a private lender for a flip as we speak.
    Michael
    Replied about 7 years ago
    Good Luck K Smith – I hope you get that lender. There are plenty of them out there so go get them!!!
    Michael
    Replied about 7 years ago
    Good Luck K Smith – I hope you get that lender. There are plenty of them out there so go get them!!! Reply Report comment
    K Smith
    Replied about 7 years ago
    This was very informative being that I need a private lender for a flip as we speak.
    Luis
    Replied about 7 years ago
    Welcome Mike! Although your suggestions are valid my experience has taught me that you have a couple of caveats that you did not cover in this post and of course its important to cover both the good and the bad. First your headline is deceiving because in reality it’s practically impossible to flip houses with no money. The money has to come from somewhere. Second although 1 and 3 are realistic funding sources I don’t know any people with money that will give $20, 50, 100k + to someone that has no experience and/or has never done a flip. And if you use a hard money lender you will absolutely have to use some of your own money. BTW, to call a hard money lender a “great source of funding” is not accurate at all, if it is please give me the contact information for your hard money lender because all of the ones in my town are not “great sources of funding”. Your forgot family and friends as source or private money lending. It might actually be easier to get a loan from “Uncle Joe” than from a total stranger.
    Michael
    Replied about 7 years ago
    Hi Luis, Thanks & I look forward to contributing to this great forum. My intentions are never to deceive. Very quickly in the article we mention OPM (other peoples money). That is why the headline is phrased as a question. It is what is asked most often & I wanted to answer a very popular question from new investors. To your second comment you have to go find those people. They are absolutely out there. True it is harder in the beginning but you must educate yourself relentlessly, get a mentor and just be up front and honest with who you are trying to partner or raise money with. We have to start somewhere & if a deal is good you will find someone!!! True about the hard money lenders that you “may” have to fund some of your own money. I say may because it is not always the case. The nice thing about Real Estate you can be creative. If you secure a hard money lender that is a start & how about finding a partner to lend you or partner with you for the required money by the HML. They are all great sources because the bottom line if you get a deal done and make money with any of the lenders we suggest then you are on your way! There are some good hard money lenders out there. Go to some of the local REIA clubs to meet them. We mentioned relatives in Partners but thanks for elaborating. Family and friends could be a great place to start because your credibility may be best with them in the beginning. One of the things I teach in my coaching is all about Mind set & I have some information about it in my ebook. Its free so check it out. I hope I helped to answer some of your concerns. Best of Luck.
    Zayne
    Replied almost 7 years ago
    This is not a true “no money down” way of flipping houses. Why put your credit at risk like that? You don’t have to borrow money from anyone to start flipping houses. Just take control of the home with a contract and assign it to an investor OR a lease option buyer if there’s not enough equity in it.
    Michael
    Replied almost 7 years ago
    Zayne – It is most certainly, read on in the article right in the beginning the no money means OPM. I am very clear about that. If you are serious & have a solid financial plan for your projections the idea is to minimize risk as much as possible. Life is a risk and it is how you manage it to minimize the risk. The flipping your referring to is flipping contracts not houses which is clear in the article as well Even tying up contracts you still need to put money down on offers & more once it is accepted on REO’s. Of course there are situations on privately owned properties with equity where you can get it under contract with little or no money but it is more difficult especially if you have competition. Most are upside down these days so there are not as many of those around like they use to be. Thanks for your comments but it looks like they are different investment strategies. Please share yours & let me know where you are flipping contracts as I am an active investor and may be interested in what you have to assign. this is why Bigger Pockets is a great place!!!
    Tommy
    Replied almost 7 years ago
    Mike I know of three homes right now that could be flipped for 40 to 60 I just need funding?? The Market hear is not that good. as far as sales goes.
    Michael
    Replied almost 7 years ago
    Not sure on the comment Tommy. You say you can flip right now 3 houses for 40-60K but then say the market is not good for sales? You may be thinking something else but it appears to be written differently. Also that is a big spread for the same property sales of 50%. Carefully get a qualified CMA & find an aggressive sell price and don’t count on a range like that. Funding is available in many, many ways to get deals done. Partnership, hard money, private money, contractor’s…..to name a few. You must present an opportunity for anyone investing in YOU! Never ask for money.
    Mel
    Replied almost 7 years ago
    Hi Mike, thank you for share your knowledge, it is helpful. I live in Portland, OR and the market is improving. I just got my real estate liecense and my dream is to get into fixer upper business. I am passionate about starting the business and I would love to talk to you about INVESTING.
    mike
    Replied almost 7 years ago
    Hi Mel Congrats on getting your license Sure we can talk Send me an email and I will schedule a time Happy New Year
    Mel
    Replied almost 7 years ago
    Hi Mike, I hope you had great new year. If you can email me at [email protected] we can set time to talk.
    Ashley Scroggins
    Replied almost 7 years ago
    Thank you so much for writting this article. I am very interested in house flipping and I feel like this article helped with what resources I can reach out to. Thanks!!
    Michael
    Replied over 6 years ago
    Your welcome Ashley. BP is a great resource so make sure you check out all the other great content provided for free.
    Terry P
    Replied over 6 years ago
    I am finding that using OPM is not that easy. If I have a friend or family member for example with case they are subjected to the SAFE and not a maybe a new JOBs act….Legal red tape, lending laws, that keeps them from lending money.
    Deana
    Replied over 6 years ago
    Hi Mike, I am such a newbie to all of this. But, I am grateful for the wealth of free information found here. Thanks for a great article. I’ll keep reading them if you keep writing them. All the best, Deana
    mike
    Replied over 6 years ago
    Your welcome Deana. Glad the information is helpful to you. I appreciate you reading and commenting. Check out all the other articles as well in BP as you will find there is a wealth of information here. Ty
    mike
    Replied over 6 years ago
    Your welcome Deana. Glad the information is helpful to you. I appreciate you reading and commenting. Check out all the other articles as well in BP as you will find there is a wealth of information here. Ty
    Raymond
    Replied over 6 years ago
    Hey Mike, I recently attended an Armando Montelongo Real Estate Investment Seminar. It was pretty pricey and left way too many wholes in understanding the process of house flipping. I really need some more help in learning how this really works. The seminar lasted 3 days but the course structure was sloppy and bounced around to way too many topics at once without making sure everything was understood. At the end of the course they were asking for 29k to be part of a house flipping tour in orlando, which at that point was a little ridiculous. If you have any info on where I can be educated on house flipping at an affordable rate, please tell me, lol. Thanks.
    Michael
    Replied over 6 years ago
    Hey Raymond – That is a lot of money to spend for a weekend bus tour. You can get so much information here at BP from me and other bloggers. Check out the forums also. Check out Jay Scott’s new book being promoted here and get the Ultimate Guide here from BP for free. You can also get my free ebook. After you read all these and checked out articles and so on…….here at BP. You will have started to make progress. You can also try to find a local mentor and take him or her out to lunch & let them know you want to find them deals and you will bring them to them if they help you learn. So many ways to learn for free & so many ways to learn for a small investment into your education. If you were to pay a large sum I would suggest you find a local real estate investment coach that does this full time and will teach every step of what to do and what not to do & maybe even partner with you. I believe you would be much better served in this capacity. Best of luck and keep us posted on your progress.
    Raymond
    Replied over 6 years ago
    Thanks for the info mike. I’d love to find myself a mentor so I can really get started. Just wouldn’t even know how to find one. I’m going to definitely google some after this. Where can I find your free ebook? I’m trying to soak up as much information and knowledge as possible. I need to find my first deal so I can continue from there and at least introduce it to investors. I have little to no connections in this field since I’ve been a retail manager for so long. I definitely need to network.
    Michael
    Replied over 6 years ago
    Hey Raymond just go to my website & you can get it there. good luck & don’t’ forget to get those other Items found here on BP as I know they will help you as well.
    Travis
    Replied over 6 years ago
    I am a superintendent in a construction company, sick of traveling, and want financial independence. My homework is done as far as knowing what a property needs to increase its value however, I dont want to risk my savings account while learning the process of flipping property. Do you know of any investors willing to take on an apprentice?
    Michael
    Replied over 6 years ago
    Hey Travis. Tell me more about yourself and where you’re from. I would like to talk to you about this if you are in my area. You can email me if you like and leave your #.
    Alfred G.
    Replied over 6 years ago
    Mike, I’ve been looking into different avenues for real estate, and one I’m truly interested in is flipping land. I’ve signed up for your ebook, but haven’t looked into it yet. Do you cover land flipping at all, or only real estate? Thanks for your support here. Alfred G.
    Michael
    Replied over 6 years ago
    I don’t get into land flipping. Where you from Alfred? I have some people I work with that are land experts. Are you looking to flop raw land or getting permits in place?
    Alfred G.
    Replied over 6 years ago
    I’m in Florida. I’m looking to flip land in any state (after doing my homework, of course), plus invest in some in the future for passive profits. However, I’m a total newbie to it. Thanks for offering to hook me up with your friends. I’d really appreciate that. Alfred
    Alfred G.
    Replied over 6 years ago
    And I’m looking to flip raw land to start.
    kim
    Replied over 6 years ago
    Hi Mike, Here in my area there are a lot of homes that are available and the sales are up 21% in the last year. I need an investor but my credit is shot from losing a business and house in 2008 from the bad economy. Is there anyone that will lend me money if I haven’t ever “professionally” flipped houses before? I helped family buy several hud homes and remodeled them.
    kim
    Replied over 6 years ago
    Hi Mike, Here in my area there are a lot of homes that are available and the sales are up 21% in the last year. I need an investor but my credit is shot from losing a business and house in 2008 from the bad economy. Is there anyone that will lend me money if I haven’t ever “professionally” flipped houses before? I helped family buy several hud homes and remodeled them. Reply Report comment
    Michael
    Replied over 6 years ago
    Yes but you will have to work at and prove you have what it takes. You might be better off partnering and giving up at least 50% of a deal to get started. Don’t just think of hard money, think of people you may know that may not be making much on their money if it is in a bank or cd. The good thing is that you have some experience in remodeling which will help you in the rehab process. Start going to REIA meetings in your local area and take out experienced investors for lunch and tell them what you are trying to do and if you bring them a deal would they be willing to partner with you. Best of luck Mike
    David
    Replied over 6 years ago
    Hello Michael, Thank you for a very informative article. First of all, do not mind all the doubters and nitpickers – it comes with blogging (I know from the experience). Secondly, you are providing a great service to folks (like me) who are new to real estate investing, and therefore introducing competitors into the crowded market place. This is rarely welcomed by the professionals who feel annoyed by the newcomers, as we are less informed but hungrier than them by default, will have to work harder as we make stupid mistakes, but will take less profit and outbid them in the process of purchase. Many of them are probably laughing at my comments, but will remember that this is exactly what killed the real estate market – amateures like me coming to the forefront of house flipping right before the bottom dropped out. So my question will concentrate on the inventory pitfalls of the house-flipping in current environment, where flipping is made very hard by institutional investors and hedge funds entering the marketplace for packaged deals, and also some Chinese money floating around in the hands of locals (mostly anecdotally, but probably very true). I am sure you would agree that insurmountable tasks of acquiring the properties are now on courthouse steps (pre-foreclosures), as well as in bread-and-butter neighborhoods, where properties are scarce and go for extreme premiums, as investors are competing with limited supply combined with emotional owner-occupants. This leaves us with undesirable neighborhoods and run-down properties (requiring a lot more than cosmetic repairs) – hardly where a newbie would want to start. Please enlighten me on what your course of action would be in this market. I am a professional stock market trader and have purchased my own home through pre-foreclosure (for 30% below the appraised value) on courthouse steps in the middle of real estate market collapse. I know very little about house flipping but know quite a bit about real estate in general. I realize that I am asking a question not related to no-money-down techniques discussed here. I am open to discussion through email, if you prefer. Thanks, David
    mike
    Replied over 6 years ago
    Hi David There is a blog by Brandon Turner I believe about this question on hedge funds and the market.go check it out. He asks other BP Bloggers and are different oppions on this. Really depends on your market. I have not fealt any restrictions on deal flow as a result My Capacity has increased. You can also get on the forum and ask in your geographic area. I cam add some more information later Ty
    Anthony
    Replied over 6 years ago
    Hey mike, I just wanted some more quick information. Can you take out a business loan to start flipping houses? I would like to make it a business in my area, housing market is low here because all the houses are out dated and mostly just need a update but no one wants to take the time or spend their money to. Any ideas or tips would help out alot ! Thanks
    Michael
    Replied over 6 years ago
    Hi Anthony- Depends on your credit and history and of course the property potential. You should create a simple business plan and financial statement and start calling your local banks and set up meetings with the loan officers. Being prepared on what you want to do will help your case. Let me know how you make out. Good Luck!
    Warren
    Replied over 5 years ago
    Anthony, I am curious to know how you are doing? Please let me and all of us know how your business loan came through or what obstacles you are facing? Warren
    Anthony
    Replied over 6 years ago
    Hey mike, I just wanted some more quick information. Can you take out a business loan to start flipping houses? I would like to make it a business in my area, housing market is low here because all the houses are out dated and mostly just need a update but no one wants to take the time or spend their money to. Any ideas or tips would help out alot ! Thanks
    Cece
    Replied about 6 years ago
    Thanks, Mike…JUST the info I’ve been looking for…going to a reia come Monday!
    Michael
    Replied about 6 years ago
    Excellent Cece – Let me know how you make. What REIA meeting you going to?
    Sherryann gaumer
    Replied about 6 years ago
    Hi Michael, You have a lot of valuable information here. I am not new to real estate, I have been a brokers assistant, bought several homes for me as well as helped friends and family for many years. I have a few questions I have wondered about. Do you have to have your real estate license to flip or can you hire a realtor? Should you hire a contractor and architect for remodeling and do most homes need to be remodeled? My thought is get foreclosure a fix them back up and resell, is this a good way to flip? Seems in my area in Florida folks are in bidding wars on homes that are move in ready. I have the drive, a lot of knowledge but not all and want to learn and work with the best!
    Michael
    Replied about 6 years ago
    Hi Sherry, You don’t need your real estate license to invest. I think you should always used a licensed contractor and an architect only when needed on more complex layouts where you would need them. That is the basic idea. Buy, fix and flip or hold for rental. All the best
    Chuck
    Replied about 6 years ago
    Michael, I am a total Newbie to this but have been thinking about it for a long long time. I couldn’t do it before as I was in the HVAC business as a service manager and then as a sales consultant so I didn’t have time because I am in the Southeast and well, Air conditioning takes precedence. 🙂 Anyway, I am disabled now,no longer can climb on those roof tops or in attics or on decks etc,, am on a fixed income Social security disability which is really hard to handle when you have always worked and made money all your life. I am 55 years old. I got an offer though from an investor to start out as a Bird Dogger? My credit is borderline at 658 and I have a bankruptcy that is over 36 months old but I surrendered a home in that bankruptcy and was current on the loan at the time. I just knew I could not pay for it, I was laid off at the time, Bank of America took their sweet time taking that home out of my name.My bankruptcy discharged 3/26/10 but they didn’t take home out of my name until 02/12/12 !!! Really screwed me up. So, I just got turned down for a USDA Rural Development Loan because of, I am assuming I cannot get the money to flip houses either? So I was going to work the Bird dog angle for a while, I wanted to know what you thought of this? is this worth a look? they are supposed to send me some details today such as the criteria for the homes they are interested in etc… Should I make up my own contract for them and hold back property info I find until they sign a contract agreeing to pay me for the info? I need some advise. Thanks so much Chuck
    An'drea
    Replied about 6 years ago
    Hello Micheal, I LOVE THIS WEBSITE!!!!! I found this gem at 10pm it’s 5am and I’m still wide awake. I’ve read the guides and many articles. I’m a 27y Leo, Life path 8, USAF vet, current Real Estate student with a construction background. I’m the Jane of All trades type you can put me in any situation and I will excel the question is happiness. I can score high on any test if I’m given the guide. Other than the military where I dominated as a Health Care Admin I spent my life in the sales world. I absolutely hate cubicle clock watching with achievement limitations. My professor said when I can truly say I’m passionate about something that is the road in which to follow. When my duty ended, I returned to Tacoma, Wa to find a whole new town created on the edge of its realm “Dupont” and I was captivated. I quickly enrolled in a construction course. Now in Hollywood, Ca studing RE extremely interested in all aspects of residental, commercial and international investing/development. I’m searching for a compatible mentor. My knowledge has surpassed the individuals within my circle, I have signed up for the local RE Club, there is some kind of fee involved that they will disclose when they contact me…on a student budget so idk. I’m a doer and a HUGE dreamer. I understand the sky is the limit. I’ve been waiting patiently for my chance soaking up every drop of knowledge along the way. Im reaching out; Loyalty, Resilience and Desire. -An’drea
    Joshua Dorkin
    Replied about 6 years ago
    I’m glad you’re loving the site, An’drea! Make sure you listen to the podcast as well, and definitely set up an account here so you can connect on our forums! Good luck! Josh
    An'drea
    Replied about 6 years ago
    Thank you, Josh! I’ve created an account along with a new forum. 😉
    Michael
    Replied over 5 years ago
    Hey Chuck – bird dog is fine & typically it is done on the honor system so you should trust the people your doing business with but a contract is fine as well. As you learn more about the business you should consider wholesaling if you like this angle. You are more in control by having control of the contract and assigning the contract to an investor for a larger than bird dog fee. However don’t look at it as a short cut to investing as most are told this by the Guru’s. Wholesaling is a business that requires time and effort like any business to be successful.
    Michael
    Replied about 6 years ago
    Hey An’drea – nice to see you enjoying all the information on this BP site. Like Josh said start getting on the Forums to ask questions and set up your keyword alerts, you can follow me as well and request me as a colleague. You can check out all my articles along with other great contributors here on BP. Best of luck.
    John Fossetti
    Replied about 6 years ago
    Hello An’Drea, It sounds to me with your background and willingness to be successful you will do a great job in real estate. There is a ton of great information on BP and on top of the information there are a lot of professionals like Mike who take time out of there day to post answers to questions! To your success!
    Michael
    Replied over 5 years ago
    Hey Chuck – bird dog is fine & typically it is done on the honor system so you should trust the people your doing business with but a contract is fine as well. As you learn more about the business you should consider wholesaling if you like this angle. You are more in control by having control of the contract and assigning the contract to an investor for a larger than bird dog fee. However don’t look at it as a short cut to investing as most are told this by the Guru’s. Wholesaling is a business that requires time and effort like any business to be successful. Reply Report comment
    Jerry Riley
    Replied about 6 years ago
    Hi Michael, I have been wanting to flip houses. I just have no idea how to get started. Do to a spinal fusion in 2010 I began having severe neck pain and had to leave my job. My credit scorestook a hit. We bought our first house back in 2009 and we have kept up the mmortgage payments. The only problem is the last few years we have drained our savings. Is there any possible way we could get started flipping houses under our current situation. I am looking into refinancing to lower our interest rate from 5.5 to try to double our home equity in hopes to get a loan to invest in another property.
    Michael
    Replied about 6 years ago
    Yes Jerry it is most certainly possible. Your desire, will and determination is more important than any training or education. You need to learn of course but you must have the other traits to put a plan in place. Starting out on BP and getting all the information to learn from other investors is a great way to get started. All the best
    John Fossetti
    Replied about 6 years ago
    Hello Jerry, the number one reason that prevents people from getting started in FEAR. I spoke to a lady last night that told me she has always wanted to do what I do. She got laid off at Verizon, they gave her a settlement, and she opened up a taxi service near where I live. Her biggest fear was what if an offer actually gets approved? Ironic? When I first started out, I used my hard money lender paying 6 points and 15 percent. Sounds expensive but it was cheaper than actually getting a 50% money partner. It ended up adding up to about 30% of the deal. Most hard money lenders do not run your credit score and they care mostly on the value of the property. If you use a hard money lender I would recommend that you add 6 months mortgage payments into your cost so you can pay them monthly (if they charge you monthly). There are a lot of ways to get money in becoming a real estate investor, if you get a good deal, the money will come, if you have the money, you will find a good deal. It is strange but it happens that way!
    Michael
    Replied about 6 years ago
    Yes Jerry it is most certainly possible. Your desire, will and determination is more important than any training or education. You need to learn of course but you must have the other traits to put a plan in place. Starting out on BP and getting all the information to learn from other investors is a great way to get started. All the best
    Michael
    Replied about 6 years ago
    Yes Jerry it is most certainly possible. Your desire, will and determination is more important than any training or education. You need to learn of course but you must have the other traits to put a plan in place. Starting out on BP and getting all the information to learn from other investors is a great way to get started. All the best Reply Report comment
    R.C. Guzman
    Replied about 6 years ago
    Thank you so much for this! I’ve been wanting to do this for a while now just had no idea how I could do it with no credit and no cash in the bank. I have an investor meeting tomorrow with my local REIA and you can bet I’m going to hook an investor with one of these techniques. Thanks again! This information is so simple yet easily overlooked!
    Jonathan
    Replied almost 6 years ago
    Hello Michael, I have recently found been doing a lot of research to try to get into house flipping. I cant seem to find all the answers to my questions, so here goes. One thing I am trying to figure out is how can investors or flippers buy a house here in FL fix it up and re-list it in 30 days? I have heard there are laws regarding anti-flipping and that you have to be cautious as tax penalties can be larger for short term investments that actually turn a profit. If this is true what incentive is left for me to even want to proceed? Thank you for any help you may offer!
    Michael
    Replied almost 6 years ago
    Hi Jonathan – I haven’t run into on any of our deals. Some govt loans do put 60 or 90 day no flip rules on addendums when you buy but quite honestly by the time you buy, renovate and then sell it will be very rare you do all this in under 90 days anyway. As far as taxes go & I am not giving any tax advise (disclaimer) but it the difference of short term vs long term capital gains and has noting to do with penalties. You should try and know going in if you are buying to flip short term or buying to hold long term and run your numbers both ways. The best advice is go on the forums and post your question and use Florida for for your key word search and you will here directly from Florida investors. Thats what is so great about bigger pockets. Good luck
    Erica
    Replied almost 6 years ago
    Hello Mike, Thanks for the free information. I have been wanting to get into real estate for a very long time. I have really been having the itch since I’ve closed on my first home. I have friends who does construction and are willing to help out on the first flip. My father in law has his own construction company also. My father in law has never done anything as far as flipping he has how ever built his own home. I have years of knowledge around me when it comes to construction. This would be my first rodeo, outside of closing on my very own home in 2012. How do I get investors to have the confidence in backing me?
    Michael
    Replied almost 6 years ago
    Hi Erica – You will get confidence the more you learn. I suggest you continue to learn about this business and read all my blogs. Work with a coach or mentor but make sure you do your due diligence if you pay for any services. You have the 2nd most important part around you. The renovation. Maybe they would be interested in a partnership of some sort with you. Confidence comes with experience and like myself and many other’s here you have to start somewhere. All the best. Be excited about your plan and let them know how you will protect their money is most important.
    Jolie
    Replied over 5 years ago
    I would love to flip homes but do not know where to starti I absolutely live the real estate business and im currently studying to take my Real Estate PSI exam to get licensed. I do not know the laws in PA about flipping homes but would like to know. Where should I start? Which books or website should I go to learn all the tools i need to become a flipper? Can I loan money from a bank to start my flipping home business? What amount of money is good to start? I appreciate any helpful advice. Thanks in advance!
    Michael
    Replied over 5 years ago
    Starts here Joli on BP. There is so much information. Learn a little every day and get on the forums and ask questions and be specific. Good luck.
    Chris
    Replied over 5 years ago
    Michael Question about using OPM. I have friends who might be willing invest in my new house flipping business. In your opinion, if they would invest 10k what would be a fair interest rate? I was thinking that once the profit comes in, giving them $200 for every $1000 they invested on top of returning the $10,000 they originally invested. So their total return would be $12,000. Also, what happens if the flip goes really bad and I lose money. Do I still pay the investor something?
    Michael
    Replied over 5 years ago
    Depending on what you need to buy a house $10,000 may not be enough. It isn’t where I am from. I wouldn’t recommend more than 2 lenders on any property unless you start pooling money and follow SEC guidelines……. not something you want to start of doing. Find someone to fund 100% and if not get 2 lenders – one in first position and the other in second. much cleaner that way. Always work with an attorney to do it legally and professionally. BTW – that would be a very good rate and too much in my opinion. For instance if you paid 20% like you said and you finished the deal in 6 months that would be a 40% return and more than you need to pay.
    Christine
    Replied over 5 years ago
    Are you talking about finding an investor or lender to provide the cost of the down payment and not the entire purchase price? So I would still need a mortgage and then also pay interest on the private loan/investor contribution?
    Michael
    Replied over 5 years ago
    You can do it that way as well Christine. You may not find an investor/lender to fund you 100% on your first few deals. A hard money guy most likely wont unless maybe he has an equity position and you can prove he will make good money taking on an equity position. If you did get a hard money loan or lender who put up a majority then yes you would need another lender in 2nd position to put up the rest and pay them interest as well if you didn’t have the money yourself. Many ways it can be done.
    Christine
    Replied over 5 years ago
    Are you talking about finding an investor or lender to provide the cost of the down payment and not the entire purchase price? So I would still need a mortgage and then also pay interest on the private loan/investor contribution? Reply Report comment
    Warren
    Replied over 5 years ago
    Michael, I noted above that Anthony had asked or reference about a business loan versus a conventional loan or other financing. I did not see a repost regarding his findings. I am curious, in your experience…are you able to flip using other people’s credit and no cash out of pocket? Thank you for the article. Warren
    mike
    Replied over 5 years ago
    Yes Warren I explain in the article how. Many of our private loans and hard money loans are without any of our own cash. You can do this with partners as well.
    Chelsea
    Replied over 5 years ago
    My husband and I both have experience in construction. We flipped one house years ago in Canada but have since moved to the U.S. He’s a licensed real estate agent and would like to start flipping houses again but have NO money. We don’t know many in the area either because we’ve only lived here a short time. Any tips on how to get an investor???
    Michael
    Replied about 5 years ago
    Yes start networking. Go to meetups, REIA meetings in your area, chamber of commerce…. create business cards and just start taking action. Be passionate about your investing and just start telling people what you are doing.
    Michael
    Replied about 5 years ago
    Yes start networking. Go to meetups, REIA meetings in your area, chamber of commerce…. create business cards and just start taking action. Be passionate about your investing and just start telling people what you are doing.
    Howard Grant
    Replied about 5 years ago
    Great article!! As a novice real estate investor this definitely helps me to stop day dreaming and take action. Thanks a lot and keep it coming.
    Michael
    Replied about 5 years ago
    Your welcome Howard. Check out all the articles and forums here on BP. The best site for free education or if you upgrade to pro well worth it.
    mike
    Replied about 5 years ago
    Hey Mike great article. I have been doing a couple flips for my father but I do want to get out on my own and do it for myself. I do not want to borrow from my father since he has worked hard to get where he’s at and I want him to be able to enjoy life. My credit is shot due to a divorce and I’m working on rebuilding it. I have the drive and passion I just don’t know where in illinois to start finding people to fund me. Any insight would be greatly appreciated.
    Michael
    Replied about 5 years ago
    You can start by looking up REIA’s in your area and attending them & ask for hard money lenders there or sometimes you can meet private lenders as well. You can also google hard money or private money to seek out local vendors. Your dad would be a great source so I would start there first to save on rate and he has trust in your where you have done projects with him. Your experience in rehabbing will definitely help you in your quest. All the best.
    Michele J. from Los Angeles, California
    Replied almost 5 years ago
    Awesome articles! Thank you so much for sharing. It helps me to understand investing in single terms.
    Brett Iwanowicz rental_property_investor from Rochester, NY
    Replied almost 5 years ago
    I have yet to find an investor who will fully fund a project, let alone loan money to anyone who has little to no experience; has anyone actually employed this theory and been successful or am I just not talking to the right people??
    Mike LaCava from Buzzards Bay (Bourne), Massachusetts
    Replied almost 5 years ago
    Hi Brett – If you have little or no experience you must first educate yourself and learn the business prior to actually doing it. You must build visibility and credibility with investors. Is your first deal the hardest, maybe? If you truly do your research and you prepare an investment package showing an investor the potential return by investing with you and you have shared with him your knowledge you gained in your training and education that you have a solid plan to fulfill the venture then you chances will greatly improve. You may want to offer equity in the deal to make it more appealing to an investor and as you gain experience you will have more ability to negotiate better terms. Good luck.
    Sarah
    Replied over 4 years ago
    Hi Mike, My boyfriend and I are 20 years old and he has made it clear that he wants to flip houses. We live in virginia beach so I know there is potential here. He is very smart however sometimes he gets ahead of himself. I just want to make sure he takes the right steps in doing this since it can be risky. Also, he doesn’t have enough income for big lones, which is why I found this site. His dad has a successful painting business so that’s one advantage for fixing up houses. Any advice would be greatly appreciated. Thanks!
    Manu Tufuga from North Las Vegas, Nevada
    Replied over 4 years ago
    Thank you for a well presented source of information. I am new to this venue and looking forward to build on my little knowledge learned from shows like HGTV. Looking forward to learn more from a lot of you all that’s already being on the band wagon and will ask questions in the future. Thanks.
    Ted Fairchild from Kailua Kona, Hawaii
    Replied about 4 years ago
    Excellent info. Very motivating. Let’s all remember to stay focused and not forget to take time off, a day without the cell phone for example….. Aloha!
    Marina Kimak from San Francisco, California
    Replied about 4 years ago
    great information, thank you. Did 2 great deals in the past, than was busy doing other things. Really love real estate and decided to get back in. I have a fabulous idea right now, and the perfect place to buy. It is in San Francisco, hence darn expensive, but it would generate almost double profit within 6 months or less. SOOOOOO I need investor(s) with 3M ASAP. Any interested party our there?
    Marina Kimak from San Francisco, California
    Replied about 4 years ago
    great information, thank you. Did 2 great deals in the past, than was busy doing other things. Really love real estate and decided to get back in. I have a fabulous idea right now, and the perfect place to buy. It is in San Francisco, hence darn expensive, but it would generate almost double profit within 6 months or less. SOOOOOO I need investor(s) with 3M ASAP. Any interested party our there?
    Brandon-Lee Platt from Juárez, Chihuahua
    Replied about 4 years ago
    Hi there. Oh man this is gone be real tough. Well, I’m a 19 year old, and I’m really interested in Real Estate, most preferably House Flipping. I’m from Namibia, Africa. And the housing market in our city, Windhoek, is quite big. A few tips or encouragement could really go a long way. Thnx. Brandon-Lee
    Arjan Amiri
    Replied over 3 years ago
    The article talks about getting OPM for a deal but how do you find a deal?
    Richard Y. investor from Forest Hills, New York
    Replied over 3 years ago
    Thank you, Mike. I found my local REIA by using the links you provided. Although I haven’t attend any event yet, at least I find out where they are and how to join. I think it is a good way to start. I just started to learn REI this year. Your article provides me a way to learn. Thank you again, Mike.
    Chris Luksha from Jaffrey, New Hampshire
    Replied over 3 years ago
    Thank you Mike for this article. As a newbie it has helped me better understand the terms I need. For example the difference between hard money lender and private money lender was at first confusing for me. I simply thought they were the same. This is an evergreen article for sure. If it is not already it should be ‘stickied’ in the newbies forum. Blessings, Chris
    Ross Noel
    Replied over 3 years ago
    Mike, What advice would you give to a first time flipper? I would guess that not a whole lot of investors would be willing to sink their money into a project with someone who has never flipped before. Ross
    Ray Sample investor from Chehalis, Washington
    Replied about 3 years ago
    I loved the article Mike, I especially like how you mentioned to just get out there and make it happen when seeking out private financing. I often am hesitant to approach people I know at church for private funding. We have many professionals and Dr.s in our church and I know that if I approached them that many could be interested in lending money. I need to just bite the bullet and approach them. I’ve used the following canvass in the past on some people I know, but haven’t got the nerve up to ask the big fish yet. Do you have a different suggestion than the following script from “Are you Dumb Enough to Be Rich?” “I know this isn’t for you, but do you know anyone who might like to make 6-8% on their money with 1st lean of real estate, Short term, 6-9 months?”
    Alani Tangitau from Antioch, California
    Replied almost 3 years ago
    Just started reading and learning about real estate and i really enjoy it specially the idea of passive income and freedom. ineed help i dont know where to start or hi=ow to look for deals.any suggestions?
    Rick Winton
    Replied over 2 years ago
    Your info is a lot of the same I’ve seen elsewhere and it was very helpful to learn where the best place for funding was. I’m confident with your info that I’m heading down the right road in pursuing my flipping career?
    Rick Winton
    Replied over 2 years ago
    Your info is a lot of the same I’ve seen elsewhere and it was very helpful to learn where the best place for funding was. I’m confident with your info that I’m heading down the right road in pursuing my flipping career?
    Rick Winton
    Replied over 2 years ago
    Your info is a lot of the same I’ve seen elsewhere and it was very helpful to learn where the best place for funding was. I’m confident with your info that I’m heading down the right road in pursuing my flipping career? Reply Report comment
    Rick Winton
    Replied over 2 years ago
    Your info is a lot of the same I’ve seen elsewhere and it was very helpful to learn where the best place for funding was. I’m confident with your info that I’m heading down the right road in pursuing my flipping career? Reply Report comment
    Rick Winton
    Replied over 2 years ago
    Your info is a lot of the same I’ve seen elsewhere and it was very helpful to learn where the best place for funding was. I’m confident with your info that I’m heading down the right road in pursuing my flipping career?
    Rick
    Replied over 2 years ago
    How much money do I need if I want to do it without an investor?
    Jennifer Leonard
    Replied about 2 years ago
    Mike, I really liked your article… Thank you for sharing. I would like to know how much money I would need if I want to do it without an investor? My fiance and I have been interested in getting into house flipping for a while now. We don’t have the greatest credit but my fiance is a contractor, not licensed but he can remodel, fix up just about anything. He can do anything when it comes to fixing up a house and he works fairly quickly. He has also taught me a lot along the way including electrical, drywall and such so together we make a great team. He has done a lot of remodeled kitchens, bathrooms , tiled floors , and more. We don’t have a whole lot of money but we do have a lot of time and experience to invest. Where and how can we start? Thanks! ? Jennifer
    Reginaldo Santos
    Replied almost 2 years ago
    Thanks for all the information. I just got the click that I was missing. I bought a property and it is the first one. I thought I was luck but I found out I prepared myself really good, I saw a lot of videos and I found a great property. It is a nice piece of land, I’m going to convert a 2 family building to a 6 condominium units. It is already approved by the city. I’m going to make $1.5 million dollars profit. But the problem is that I know more of this properties and I don’t have more money available to get another project at the same time. I”m looking for investor to do more projects at the same time. I’m a contractor with license in MA. Most of my jobs are roofings and sidings, I know people for all other trades, very good people to work with. Seeing your article I got the click and tomorrow morning I’m going to do the right thing to find the investors that I need. Thanks.
    Angela Douglas
    Replied about 1 year ago
    I Mike, I have been feasting on the great information you have provide here, brand new to investing, I am interested in rental property just registered Bornformore Housing Rental LLC with Legal-zoom, looking for 100% investors to make it happen, Working as a full time RN would like to invest in one property before the year runs out . Thanks for all the information on BP.
    Francine Johnson from Bronx
    Replied about 1 year ago
    Hey Michael, Great article! I am fairly new to this, and wanted to know what are some of the things you should be putting on your business card?
    Romeo Gjergji from Philadelphia, Pennsylvania
    Replied 7 months ago
    Hi Mike, You mentioned that if you fund the deal through a partner, you split the profit 50-50. Does the 50-50 split only apply if the partner funds the deal and I put the deal together(find the deal, hire contractors, etc.)? This assumes that the partner does no physical work and I do no physical work except for manage the project correct? What percentage split would we do in the case of when the partner funds the deal and does no work, then I manage the project along with doing most of the renovation myself. How would the profit be split if I do everything except for drywall, electrical, and plumbing? In addition, if the partner is funding the deal whose name goe son the property and how do you make sure that when you sell it each party gets their agreed percentage of the profit. Thank you, Romeo