how much cash for a flip

Question

Stanley Parsley · Answer

Clinton

I would hang onto as much of your credit as possible

I see your point

but

big payouts means big risk

you can reduce the amount of earnest money just ask

you can short term bridge loan but remember there is fees to consider

crunch the numbers add 20% and do the deal if it makes sense

enjoy

Edmund Ricker · Answer

@Clinton Hays

While you may not need cash for most of it, its important to have some cash for when you need it....and you will need it.  Flips always cost more and take longer than you think they will.

Be conservative with your numbers, enlist a contractor to help with rehab estimates, and have multiple exit strategies in mind, in case Murphy disrupts your master plan.

Good luck and hope this helps.

Ed

Clinton Hays · Answer

starting out, I need to use a hard money lender so I'm not going into max credit debt. Later on in my business I will head towards me financing it but right now I'd like to use other people's money because I don't have enough to cover a full flip. I know when you buy a house you need around $1,000 for earnest money in cash, but is anything else cash or can you use a card

Jeff Sprunger · Answer

if you can get $100K at 0-3%, skip the Hard Money all together.  why pay a HM lender 10-15%? make sure your repair estimates are as accurate as you can get them.  if you can get a contractor to accompany you when you tour homes, that will help determine costs (pay them accordingly).  as well, know your market and what the homes in the area are selling for that are similar in square footage and finishes to yours?