Is this a good strategy to get started in fix and flips?

[Tyana Blackledge]

For my first flip i was thinking of getting an llc then opening up an account to get business credit. Then using the business credit to put down on a flip and have the hard money lender cover the rest. Then after the flip i pay the expenses back then pay my business credit card back and 1031 exchange…then rinse and repeat. Is this a good strategy?

[Lior Golan]

it's really a general thing what you are saying here. You basically cannot 1031 a property if you own it less than a year, unless you rented it out and then you need an exception to accept 1031 before 1 year.

After 1 year, regardless of the status, you can do 1031.

I would suggest you learn about credit, lending for flipping, flipping itself...

Lenders don't look at Business credit, they look at your personal credit. if you have low credit, the recommendation is to increase it but not mandatory. You can start investing without even credit at all, you just have to bring more to the table.

After increasing your credit, score, forming LLC, opening a business bank account, start searching for your first flip.

Find something that is not a big rehab, start with a small-medium rehab, earn a little money and then after your experience, go and take a bigger project.

Good Luck