Flipping houses start up

[Randell Wells]

How do you get started with buying and flipping houses? How much money do I need?

[Chad Shultz]

Randell, there are many ways to get started. One of the best is to go to a meeting at your local REIA and start networking. Often times, you will find people willing to co-venture and/or partner, depending on the situation. You can also usually find money lenders of all shapes and sizes to suit your needs. The amount of money you will need to get started will vary widely. The biggest factor in answering that question might be: "What area are you planning to work in?" It takes more money to do a project in Southern California than it does in rural Arkansas. I started my very first project with a partner. We were 50/50 and both of us brought a total of $33k each to the project, (about $66k total.) It took several months between the rehab, marketing, escrow, etc. After all was said and done, we made about $19k each on the project. I kept rolling my money into the next, then the next, etc. Last year, I did eight projects, all with my own funds and/or a partner. I have used hard money, but for me, that's only on an "as needed" basis. Money is expensive. Your local REIA chapter can get you headed down the right road.