How to full time flip starting with 100K?

Question

Wanting to start full-time flipping and we have at least 100K.   Do we go somewhere cheap and pay cash and flip homes?   Do we instead get loans instead of spending all the cash up front?   We would like to buy at least 2-3 to start.    How do you get loans without a job?  Must get started soon just don't know where or how.  Any advice is appreciated.

Jef A. · Answer

I would suggest finding whole sellers in your area to find a property. Next find a hard money lender to use to purchase the property and help pay for the repairs. The advantage of the hard money lender is they care more about the deal and if the numbers work. Use the hard money to do the repairs and use your 100k to help finish off the remaining repairs. Then refinance the property with traditional lender and rent it out. I would try to keep as much of my cash as possible in my pocket because that is your safety net. Leverage other peoples money instead

Ryan A. · Answer

I'm just about where you are Michelle. I am about to sell my MFH and the proceeds will go towards flipping.

Some points to consider;

• If this is your first flip, take your time. do your dilignece and keep your budget tight. Once you do 1 you will be able to fine tune your timelines and budget next time
• Keep in mind, many markets are not great for buying right now. It is a sellers market and you will probably pay too much unless you can flip it quickly (90 days)
• I dont see you getting a loan easily with no W2 income. You may need a cosign or you could partner with someone else who is able to obtain finacing by providing some capital.
• If you are able to secure a loan, use lines of credit for repairs and vendors, you will pay some interest until you sell and can pay off the credit.

THere are some contradictory issues here so I think you have some tough choices to make but let us know what happens regardless.