All Forum Posts by: Abigail J Steinert

I keep hearing on the podcast that house flippers always tend to use other lenders, hard money, etc... Even in J Scott's book on Flipping Houses says that they use investors and don't really use their own money.

What I want to know is why. I would think you would want to use lenders in the beginning but as soon as you have enough capital from successful flips, you use your own money and reinvest.

If you were going to put cash flow money from your rentals back into the investment properties to pay them off faster, would you:

1.) Pay off one mortgage, and then the next, and then the next, ect...

2.) Put the positive cash flow into each mortgage on the property the cash flow came from.

And why?

Newbie here, wanting to get into the flipping business and in the information gathering stage.

I just listened to the podcast where the General Contractor pocketed the $1000 that he was supposed to pay the electrician. The electrician didn't get paid so they put a lien on the house. It was a huge blunder.

What do you have to do to avoid this type of issue? Do you have your GC sign contracts? Do these contracts have to be legal and through an attorney or notary? How do you enforce the contract if it was violated?

@Chris Boyington

Thanks,

That makes sense.

I keep hearing people talking about refinancing houses that are already paid in full. Can someone please explain why I would want to do that?

I was telling my friend about my plans of flipping houses and eventually moving towards BRRRR and working up a portfolio to retire on. He suggested that I buy a house cheap, flip it, then refinance it with the bank even though it would be already paid off.

Why would I want to refinance after I have it paid off or mostly paid off? It's not the first time I've heard this advice but I'm confused.

I'm just finishing up reading "The E-Myth Revisited" by Michael E Gerber.

There is a TON of useful and applicable information about business. He talks a lot about making your business with the mindset of making it a franchise. You can't really do that so well with the business of flipping houses. Each one is circumstantial with obtaining, how much work needs to be done, etc.

Yes you can apply how you think about your business and how to start it with the right organization.

BUT you can't really make flipping houses a franchise so how do you guys apply this book to your businesses?

I am now in the period of furthering education about real estate investing and flipping houses specifically.

To purchase my first house to flip I would most likely have to take a loan from the bank. If my profits from the first house does not cover the whole cost of the second house (and so on), do I have to close the loan and start a new one for the new house since that loan was tied to that specific house? Or can I rollover the funds to the next house and continue until I have enough profits to pay off the loan entirely and continue from there?

It takes a while to get the loan in the first place so it would just be so much easier if the funds can roll over.

I know I could get financing from elsewhere but if that isn't an option I'd like to know the logistics of this.

@Nathan G.

For my situation, I'm going to start flipping houses and I'd like the real estate license to get in on the ground floor to find great deals. What I'm asking is would I have to stay under a real estate broker for this? I wouldn't want to set up a huge company with agents under me, just wanting it to work with the flipping business better. I really wouldn't work with clients unless they're looking at buying my houses or I'm buying from them.

Also, how do you go about getting your license if you want to be independent?