Would like to get into flipping houses but worry $$$ to start

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Would like to get into flipping houses but worry $$$ to start

George Hughes
Prospect, CT 路 Member since 2017 路 5 posts 路 2 votes

I have been teaching for the past 15 years in Ct. The State budget is a mess I am not plan on seeing a raise anytime soon. With three boys approaching college age money has become a real concern. I was a builder, carpenter before teaching however we chose the road of wife staying home and me teaching. In this scenario we acquired a lot of debt. Last year we refinanced using most of the equity in our house. I am now ready to flip houses however lack I lack the income to begin. I have some stock and a Roth and very good credit. Does anyone have any suggestions to help me get started. My goal is to make extra money and teach my sons the process of flipping a house and the actual work.

Sincerely, 

George

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Jay HinrichsBusiness Member
Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
9y

the industry desperately needs quality GC's  get your license and bid work for others

right now subs are making a killing

if there is new construction.. start a framing company.. or a siding company

etc etc.

NO financial risk other than tools

flipping houses is capital intensive and not feasible without a lot of cash or a cash partner. and it takes time.. you start one today you get paid in 6 to 9 months.. you work as contractor your paid each draw period.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    9y

    the industry desperately needs quality GC's  get your license and bid work for others

    right now subs are making a killing

    if there is new construction.. start a framing company.. or a siding company

    etc etc.

    NO financial risk other than tools

    flipping houses is capital intensive and not feasible without a lot of cash or a cash partner. and it takes time.. you start one today you get paid in 6 to 9 months.. you work as contractor your paid each draw period.

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  • George Hughes
    OP
    Prospect, CT 路 Member since 2017 路 5 posts 路 2 votes
    9y

    Unfortunately my knees and back have been a concern for me the past few years and getting back into construction full time is a bit risky.

    0Reply
  • Zach Scheer
    Investor 路 West Hartford, CT 路 Member since 2015 路 102 posts 路 29 votes
    9y
    What if you hooked up with some flippers in your area and did some small side jobs for them. You can keep your teaching job and do this on the side, part time won't be as demanding on the body. Learn from the flipper and ask as many questions as you can, show interest and ask how you can make their job easier. Once you develop a relationship ask to lead one of their flips or work with the money man they use.
    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    9y

    @George Hughes  own the company have others do the work I did not mean you physically pound nails.

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  • Shiloh LundahlPro Member
    Rental Property Investor 路 Gilbert, AZ 路 Member since 2016 路 3k+ posts 路 4k+ votes
    9y

    @George Hughes, I agree with @Jay Hinrichs. At first flipping does take capital. But once you have several flips under your belt you can attract money to help you flip. You don't need to have the money yourself, you just need to have access to the money. Which is why I also agree with @Zach Scheer that connecting with other flippers in your area can help you learn the process of flipping. One idea might be to offer some of your construction services for a small percentage of the deal rather than for a fee. This way you can ask the experienced flipper a lot of questions about flipping and you can get to know his contacts (hard money lenders, other contractors, stagers, realtors, and others). You can also take pictures of the property beforehand and afterwards and show others the flip you participated in. This can help you gain credibility so when you contact hard money lenders you have completed a successful flip. This can help them feel more comfortable funding your flips.

    During this time you can work on securing lines of credit through getting a signature line of credit, home equity loans, business lines, loans from family members, 4 credit cards with 15k or more on them so you can get balance transfer checks. You may want to secure around 60k for a flip.

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  • Jason Piccirillo
    Contractor 路 Cheshire, CT 路 Member since 2017 路 14 posts 路 3 votes
    9y
    @George Hughes hey neighbor! Im working on building a network in the area to put some deals together. Feel free to reach out to me if you have any interest. Best of luck getting rolling
    1Reply
  • Account Closed
    Real Estate Investor 路 Dover, NH 路 Member since 2016 路 5 posts 路 4 votes
    9y

    This may not help with immediate needs, but you can turn a 401K account into a self-directed account. This can be used to invest in properties such as fix and flip, holding as rental properties, or even becoming a lender for someone buying a property. There are rules regarding how long to hold a property so there are no tax ramifications.

    Also, check into hard money lenders on-line, there are several that will work with first time flippers.

    Good Luck!

    2Reply
  • Paul Hitchings
    Alhambra, CA 路 Member since 2015 路 142 posts 路 78 votes
    9y
    Originally posted by @George Hughes:

    Unfortunately my knees and back have been a concern for me the past few years and getting back into construction full time is a bit risky.

    Start a company where you manage several small teams.  Visit each job site daily. Hire experienced people.  I think working for investors in your area is a great idea. When a construction person has a sense for flipping and real estate investing, they are worth their weight in gold to real estate professionals.

    If you really want to get creative. Partner with a local Realtor and give "flipping" tours. Take new investors through homes for sale (vacant preferably) and comment on how you might flip it (or why you might not want to).  You will build a network of clients for you and your Realtor friend while gaining exposure in your market and seeing a boat-load of properties. Someone in San Diego I know does this and I can only imagine it does absolute wonders for her. I went on one of the tours, truly genius inbound marketing.

    2Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host 路 Longmont, CO 路 Member since 2014 路 7k+ posts 路 10k+ votes
    9y
    Originally posted by @Paul Hitchings:
    Originally posted by @George Hughes:

    Unfortunately my knees and back have been a concern for me the past few years and getting back into construction full time is a bit risky.

    Start a company where you manage several small teams.  Visit each job site daily. Hire experienced people.  I think working for investors in your area is a great idea. When a construction person has a sense for flipping and real estate investing, they are worth their weight in gold to real estate professionals.

    If you really want to get creative. Partner with a local Realtor and give "flipping" tours. Take new investors through homes for sale (vacant preferably) and comment on how you might flip it (or why you might not want to).  You will build a network of clients for you and your Realtor friend while gaining exposure in your market and seeing a boat-load of properties. Someone in San Diego I know does this and I can only imagine it does absolute wonders for her. I went on one of the tours, truly genius inbound marketing.

    ^^^This! So much!!!

    I know two very smart people who do not have construction skills - but know how to run a business. I know a LOT of contractors who have no clue how to run a business. If you can run a contracting business, people will wait for your crews to be available.

    SO MANY contractors have no idea how to schedule, bill, collect, account for time, supplies, etc. If you can figure this out, and you know how to gauge good workmanship, you can keep yourself flush forever. I know 2 guys who run their own shops, one electric and one plumbing. Neither of them even answer their phones anymore, they're so busy. But if they did answer, they could book jobs out months in advance - or hire more guys to do more work.

    If I am a regular person and I want a new bathroom - I call 9 guys and get 9 voicemails. I leave 9 messages and get zero return calls. I'd be happy to get one return call - even if they couldn't do it for 6 weeks. At least in 6 weeks I know it would be done. 

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  • Zach Scheer
    Investor 路 West Hartford, CT 路 Member since 2015 路 102 posts 路 29 votes
    9y
    I like these ideas!!!
    0Reply
  • George Hughes
    OP
    Prospect, CT 路 Member since 2017 路 5 posts 路 2 votes
    9y
    I appreciate all the feed back and will definitely take them into account as I do as much research as I can before deciding the route I will take.
    0Reply
  • Kuba F.Pro Member
    Real Estate Investor 路 Los Angeles, CA 路 Member since 2013 路 2k+ posts 路 694 votes
    9y
    George Hughes Jay Hinrichs is so right. With flipping you have a mountain to climb to overcome competition for deals. Never mind about having access to funds. With profits so slim you might find that at the end of 9 months that you were slaving away for less than minimum wage. Flip that around and listen to the market. Everyone is competing not only for properties, but also for help in improving them. It's the people with tools making a killing. Of course the counterpoint is that this construction boom will fizzle at some point.
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    9y

    @Kuba F.  exactly if I could own a portion of yellow letters .. a dash of property Radar and maybe a little of Zillow and Truilia .. who cares about buying houses.. just sell tools to the mass's

    now don't get me wrong I love those guys who own those companies and I think they are brilliant business folks.

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  • Sean OToole
    Investor 路 Truckee, CA 路 Member since 2013 路 546 posts 路 445 votes
    9y

    @Jay Hinrichs I hear you, but there are days I really miss just flipping. The thrill of a deal vs convincing folks the product you've spent millions building is worth $50/mo. Grass is always greener, I suppose. 馃槈

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
    9y

    @Sean OToole  or the powder deeper and dryer !

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