Hey! Plz share some wisdom To get my First Fix and Flip.

5 Replies

I started as a wholesaler, and done 3 deal so far in 2months doing cold calling from lists I’ve got. I’m clueless when it comes to the process of getting a home for myself to flip though? Considering I usually offer cash offers as a wholesaler and the buyer ends up paying . How can I re move the buyer and purchase it myself ? Questions : -Do I put the home under my name or LLC ? -If I don’t have full cash to buy the home do I have to get a regular loan ? - I’ve known others have multiple properties at once that are getting flipped; but I also know their not their personal funds , so is one able to get a loan to purchase multiple distressed homes ? Im confused in a lot of ways, any advice or article or book or YouTube video if can’t give me full answers? Honestly anything will help as I wanna be a full time wholesaler/ flipper .

@Cristian Alcaraz  

You can either use hard money, which most of the time will require the property to be purchased by an LLC, or talk the owner into some creative financing solution. Lastly, there are some small community banks here in Cincy that do fix and flip loans, try to find some in your market that do the same.

3 deals in your first two months is pretty impressive, so congrats to you on that!

It's funny that you're talking about "removing the buyer and purchase it myself"; it's often more the other way around where buyers want to remove the wholesaler from the transaction and buy directly (to save on assignment fees).

As a wholesaler, you have a unique opportunity to negotiate seller financing.  I'd probably start there.  Brandon Turner's book on  Low and No Money Down talks about this strategy (and is an overall good read for you).  Hard money is probably the most common way flippers leverage to buy a deal, although that requires down payment from you and/or another private investor (usually 10-20% down).  If you qualify for conventional loans, bank financing is available to use for flipping and is much cheaper than hard money, but also slower and more headaches.

Remember that buying a house requires money, but it doesn't have to be your money (although it's simpler if it is).  You can always partner with or borrow from another investor as well.

@Cristian Alcaraz I'd recommend using a combo of 1. Hard Money 2. Private money

Contact Civic, Patch and 5 ARch for HM loans. 

Then you'll have to come up with around 15% of acquisition + closing costs and some float dollars to begin your rehab and pay the mortgage costs. 

The Private money will have to come from you and your network of people who are interested in funding the private part. 

All the best and if you have any other questions, feel free to DM me.