Hello. Can anyone tell me how does the whole flipping process works. I’ve been looking around for realtors and talked with someone about getting a loan for purchasing and rehab. My credit score is around mis 700s. What are the cost that I would have to come out of pocket with after everything is complete As far as closing cost etc.
I would recommend that you read one of the books on how to flip houses published by BiggerPockets. They are very easy to read and help interpret real estate to beginners. I am a beginner and I love reading these books.
Hi Whitley! The BiggerPockets books on flipping are a great intro to flipping. To answer your question about closing costs - generally speaking there are several fees associated with purchasing a home: loan origination fees (which could include processing/underwriting fees), credit report & verification of employment fees, an appraisal, and title fees. You'll also be responsible for some prepaids (insurance, property taxes, and prepaid interest). On the rehab side, those costs will depend on the scope/size of the rehab you're trying to do. Some loan programs allow for renovation costs to be included in the loan that's used to purchase the property (but usually that's only allowed if the home is being purchased as your primary residence). If you'd like me to provide an estimate of what the loan fees might look like for an example property in Houston I'm happy to do so (no charge, of course)! Also happy to answer any questions - I'm a lender that's licensed in Texas (and Colorado) and used to live in Houston so I'm familiar with the area.