Hello! I'm so new to this site as well as the real estate investing arena. I'm currently doing interior design/furniture rehabbing, but am getting ready to pull the trigger on my first flip. I spend so much time at salvage shops, finding such great deals on building supplies and have no where to put them! I love having my worlds colliding designing and real estate. I have an amazing contractor that is will in to do the work at cost and take a cut of he profits...my thought is, he will have a vested interest as well! He has done work on my home and we have worked together other projects too.
I have been looking at a FM owned property....it's a small investment, which I think is ideal for my first flip. Haven't solidified my financing yet. Since I own my home outright, should I borrow against it? Or should I find a private investor? I don't want to borrow from family....that would be a last resort. I would love to find a networking group in the Canton-Akron area, and ideas?
I'm excited to begin this chapter of my business.
Welcome to Bigger Pockets. You should be able to find the answers to almost any real estate question you have here, the people on the forum are a wealth of knowledge and they love to share, so you are in the right place.
One thing I see time and again on the forums is a recommendation to have multiple exit strategies. You may purchase the house intending to flip it, and then can't sell it. Make sure you have other ways to get rid of it or use it.
Also, make sure you run your numbers and add a sizeable cushion for unforseen problems. There are ALWAYS unforseen problems...
You mention borrowing against your own home or private lending. If you have a job right now, you might be able to qualify for a mortgage. Not sure of the rate difference between an investment-property mortgage and a home equity loan, but I would go with the one that has the lower rate. Private lenders typically have much higher rates, and for your first flip, I can almost guarantee it will take a lot longer than you think it will.
One last bit of advice, make sure you stick with your plan. It is so easy to spend "just a little more" than you planned, on everything, and your profit goes up in smoke. Remember, this isn't your house, you are fixing it up for someone else. You don't have to love it, it just has to look nice.
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