How to begin?

Question

Hi, I am a residential designer. I have bad credit and no extra money. I what to start flipping houses. What advice for me do you have to get the ball rolling?

Thank you

Nicholas Miller · Answer

Get HUD contracts and resale them before you submit the paper contract (wholesale before you buy).  Here is an infographic I put together of the sales history of HUD homes using information from the Upstar Alliance MLS.  The moving average indicates that on average you can pick up a contract for 50% of the original asking price on day 175 and according to the pie chart that will represent an opportunity of roughly 8% of properties sold by HUD.

Kyle Gregg · Answer

I would start doing a lot of research to get yourself educated, you really can't do anything until you establish a good foundation to build off of. Read books, listen to the podcasts, attend local meet-ups, browse the forums, and just take in as much information as possible.

Start saving your money and working on improving your credit score.

Paul Rector · Answer

Thank you for the advise

Trevor Ewen · Answer

@Paul Rector

I think you want to find something who has complimentary characteristics (good credit, and some extra money) and see if you can help them. I would even consider partnering for free or very low on your end for the first few... just so you can gain the credibility.

Even the best people I know who take money for investment still only take 40% at the tail end, and they have a reputation. In addition to the fact that they raise the capital.