Flipping house cash?

Question

Would you pay all cash if you have $150k Or you would still try to leverage OPM for your first flip? Any thoughts?

Naveed Q. · Answer

Syed,

The first step will be to learn. Look for a REI Club in your area and network. Try to talk to as many people as you can. You have cash, look for experienced flippers or real estate agents who work with investors in your area and see if they are interested in JV's where you bring in the money and they find and rehab the house.

The agent that I work with is also an investor so that has helped me in my case. I too have a full time job so initially my partner was managing the rehab but as I learned as I was able to manage them with my job.

Hope this helps.

Syed Khan · Answer

Naveed Q. Thank you! Yes, this did help a lot.

Darren Eady · Answer

If you decide to finance a property AFTER you purchase the property cash, you have more options, not less.  This is what I meant by "at your discretion".  If you have excess cash and don't need your money back any time soon, you could simply hold the paid for property until you decided to get financing and get most of your cash back.

Syed Khan · Answer

@Percy N. My brother in law is a contractor so maybe I can talk to him and see if he wants to do a deal with me. Thanks for the advice.

@Darren Eady I am sorry I didn't understand the 'financing at my discretion' part? Can you elaborate on that please? I have the cash to purchase a property.

Darren Eady · Answer

I buy properties cash and then use financing at my discretion after the fact.  With the delayed financing option, you aren't going to get hurt buying cash and if you go private money, you can refinance easier than you can get purchase money.  Do you actually have the cash you need or are you just asking everyone's opinion?  What are you buying?

Doug W. · Answer

My opinion is to use OPM. If you build the cost to borrow OPM into your budget you should be ok. Using OPM will be a lot less stressful compared to using all of your own cash. I am speaking from experience.

Syed Khan · Answer

Thank you for your input Mr. Naveed. Since I am a new investor and I am not a contractor either, why would an experienced investor partner up with me? Only because I can bring cash? I am just trying to find out what I can bring as a value to an experienced investor?

I work a full time job so it's not like I can do the work full time there.

Naveed Q. · Answer

Hi Syed,

When I started I partnered with experienced investor on couple of deals before starting out on my own. After 3 or 4 deals I started using OPM.

Flipping house cash?

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