Flipper/Rehabber · IN (indiana) · Member since 2020 · 7 posts · 0 votes
Hi everyone!
I just got on to this to learn more about real estate! I am a 21 year old from Indiana looking into my first single family house to flip. Nothing crazy, but a project I can do after work. I make about 20 grand a year with my current job. I have one credit card with a good credit score. I have 10 grand saved up. I need some advice on a couple of things..
Is this a long shot, or do I have a chance to do this?
How much could I get a loan for from the bank?
I am very motivated and I would say very responsible for my age. I have been flipping homes for 2 years now with a small crew. But all of this is new for me and I know I need to do a lot of research. Looking for some advice and maybe some tips. I’ve got big goals for the future and I need to keep my connections strong.
@Megan Nunnery you can totally do it! Several different options... just a couple:
1) Start with a home where you can rent out a room or two while you work on it. One that's livable, but needs a bit of work to send the value up to the sky. Negotiate a great price and get a bank loan (sub $90k house is best). Use rental money to cover holding expenses or materials.
2) Look for a seller financed home where you can put zero or just a thousand down and commit in contract to pay the seller in full after you resell the house and make your profit. No banks, no fuss.
Just make sure you finish these in less than 1 year and get em listed. Markets can drop quickly. Best of luck!
I don't know the specifics about your market, but $10,000 is a great start. I imagine you will need more than this though. So you can either: 1. Continue saving up yourself. 2. Attend REIA/BP Meetups and find other investors to partner with. Perhaps you could shadow a flipper on one of their projects. Then you could both bring money to the next deal, and you could manage the rehab. Many flippers would probably be willing to do something like this if you make an impression and have passion! Also, this could spark a long-term relationship that might greatly benefit you both.
Either approach will allow you to flip; however, option 2 is likely the faster way to building a flipping business.
i like the owner financed idea above....and work on it as u go.....but keep grinding and start figuring out how to speed up your flips and implement private and hard money
@Megan Nunnery -- You are asking all the right questions. Keep learning based and you are going to far. My sister started out "house hacking" living in one side of a duplex, renting out the other side, and worked her way up to 3 duplexes, a single family, and an AirBNB, just rolling the money from each one into the next.
There are lots of lending options too -- age doesn't matter, credit score and job history does. I have one of my properties with seller financing and the rest with traditional lending.
I don't know where in Indiana you are, but i am in Indianapolis and would be happy to send you some investor friendly local lenders and a seller financing company if it fits for you.
@Megan Nunnery Awesome of you to get started on this early. Be patient - you're far ahead of most by even thinking about real estate investing. It's a slow path. Don't give up.
Thank you for the words of encouragement I appreciate that a lot! I’m going to see where things take me, I’m keeping an eye out for some homes and I need to see what I can get approved for. I will definitely keep you in mind. Thank you for all of the help!