How to flip with little money?

Question

Hey everyone I’m new to the real estate fix and flipping and not sure how to do it with no money.  Can anyone give me more information about it?

Jonathan Greene · Answer

First, you have to answer the question "Why are you trying to flip without money?" It's usually to make money first and to learn second and that's where the problem is. Flipping takes money and responsibility and for everyone who says you should find a partner, you have to wonder why someone would partner with you if you are not the money end. Do you have real estate experience? Construction skills or background? If you want to learn first, do what other say and build relationships, but BP is full of people looking to get the quick fix of a flip or investment without money, but it doesn't work like that.

Evan Polaski · Answer

@Isaac Galeno, to add to Jonathan's comment: you can do flips with none of your own money, but you can't do flips without bringing value.  So what value do you bring to the table?

Wayne Brooks · Answer

It’s just not going to happen.  Your best bet is to find a partner with cash.

Aaron Schrader · Answer

It's a pretty big, open ended question.  We don't know what knowledge base you are starting with- have you ever purchased or owned your own home?  You said fix and flip- do you know how to fix or would you use a contractor?  Not knowing any of your background or experience, I think the best advice is from @Eric Goldman and @Marc Ferguson, which is to partner with someone and educate yourself.  If you could go to a meet up, talk and meet and just offer to be of value to someone by helping them out (maybe you know a good "drywall guy" for the person doing a fix and you connect them, or maybe you know someone selling a crappy house that an investor could fix and flip) you'll be able to team up with people and start moving in a direction.  And then when you aren't helping someone out, read, listen, and read!  As you build your knowledge base your confidence will grow with it, and then you'll get a feeling for when you should or could step out on your own.

Eric Goldman · Answer

@Wayne Brooks is correct. I would start by hitting what ever meet ups are in your area. get talking with people. see if you can partner with someone so you can learn and earn a bit. Learn how to do it and be prepared to give them a value proposition. You miss 100% of the shots you dont take.

Bruce Woodruff · Answer

@Isaac Galeno - You need to go to work for a General Contractor, stick with it and learn. You will get the crap jobs for the first year or two, but you will learn...boy will you learn..... :-)

Even then you will not have much to offer an investor because there will be dozens/hundreds of guys like you with even more experience. You have to bring something more to the table....a great personality, complete trustworthiness, a squeaky-clean resume for starters.

No one except family or a fool would partner with a 17 year old with no skills or background. But don't give up if this is your dream......

Isaac Galeno · Answer

Thank you everyone for the advice.  I don’t know much about real estate let alone know anyone that does anything in real estate.  I really want to learn how to fix and flips houses.  I don’t have anything to bring to the table and honestly I want to learn from someone else without using my money.  Afterwards when I feel more knowing about the topic use it to find a deal to bring to an investor and have their money to make me money even if it is a little bit of money.  I am currently 17 and have found that I don’t like working for someone else.  Only real thing I know about real estate is comps and good and bad areas where I live.  Not very sure how to meet anyone in my area that currently does the things I want to do in real estate. I live in Houston, Texas.

Neil Rose · Answer

Very good answers by everyone.  Do you have the ability to bring a deal to the table? If so that’s be worth a parent cutting you in on the deal? Can you rehab the property and save money on rehab costs? Of the answer is you don’t being value as of now then flipping isn’t going to work or make you money.

Marc Ferguson · Answer

Hi @Isaac Galeno. It looks like you may want to consider "creative financing" for your endeavors. I recently read Investing in Real Estate with No (and Low) Money Down – BiggerPockets Bookstore and it really opened my eyes to all the tools we could use when figuring out how to fund a project. Like the others say a partnership is one option; hard money lenders are another. If you're a military vet there are other programs to help.

How to flip with little money?

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