Las Vegas, NV · Member since 2021 · 17 posts · 3 votes
Hello,
So I’m gonna start wholesaling (and I’m dead set on doing some flips) but I have an issue... I’m currently unemployed and I just want to know if that would be a problem when getting a loan from a hard money lender and getting a property under contract with a title company.
Tampa, FL · Member since 2021 · 108 posts · 68 votes
5y
Hey brotha,
I don't know you or your life situation, but I would not recommending you do anything until you have a job and a stable income or have a business partner. While you may not be turned away by a HML theres more to it than meets the eye and you can get screwed on the back end sometimes when just starting out. You need to make sure you have more $$$ than you need for a deal before you start.
Example: $160k deal and HML gives 80% LTV. You would need $32k in earnest plus fees and money costs. Then you may need permits for the city or you get a bad batch of tile. Things happen sometimes and if you can't stand to lose your **** and eat the next day you should save up.
Plus you will need $$$ to start wholesaling. All the lists and advertising cost $$$, bandit signs typically last for a day before they get thrown away... anyway not trying to deter you, just keeping it real.
Las Vegas, NV · Member since 2021 · 17 posts · 3 votes
5y
@Ryan Talmadge thanks. I’m leaning toward wholesaling more then flipping. Although when it comes to flipping I have an investor who would help me flip a home 70/30, he’d be the one funding the process, plus his team would teach me step by step how everything is done. In that instance they’d be teaching me to fish.
But I have a good amount to kick off my wholesaling journey... I may find me a part time or keep flipping items.
Flipper/Rehabber · Anchorage, AK · Member since 2017 · 223 posts · 177 votes
5y
Yes, it most definitely will unless you have a bunch of assets. A hard money lender worth anything is going to want to see your financials and experience. I absolutely wouldn't trust a lender who didn't.
I recommend getting a job first. A job as a carpenter, plumber or electrician will pay decent and give you good experience to wholesale and flip. A job at a brokerage will also give you a lot of experience in the real estate industry and give you a lot of good contacts of the players in the biz.
I hope that helps. Feel free to shoot me a message if you want to chat more.