How to get started reparing and selling homes?
I see these stupid people on tv buying and flipping homes who know absolutely nothing about home construction, but have money to buy and sell homes. Where are they getting the money to do so?
I’ve been building homes for 15 years and would love to be able to buy homes and rent them or fix them up and sell them.
I understand the market is headed south right now and probable will continue till late 2008 or 2009.
What i’m interested in is the financing. Is my only option to refinance my current home, or is there other ways of getting money besides stealing or begging?
The first step is to get your credit score to the best that it can possibly be. The flipping industry is all about leverage. Flippers take out a loan amount for the money that they will need to buy and renovate the home. Therefore when they turn around and sell the home they can pay back the loan amount and take the profit. This is why great credit is important because you will be looking to borrow all the money that you will need.
A word of caution: Flipping homes right now is not suggested for the beginner. Across the country home sales are at an all time low. If you can not afford to carry a home that is not selling for at least 1 year than you should hold off until the market turn around.
April 11th, 2010 at 5:03 pm
The first step is to get your credit score to the best that it can possibly be. The flipping industry is all about leverage. Flippers take out a loan amount for the money that they will need to buy and renovate the home. Therefore when they turn around and sell the home they can pay back the loan amount and take the profit. This is why great credit is important because you will be looking to borrow all the money that you will need.
A word of caution: Flipping homes right now is not suggested for the beginner. Across the country home sales are at an all time low. If you can not afford to carry a home that is not selling for at least 1 year than you should hold off until the market turn around.
References :
April 11th, 2010 at 5:52 pm
wait 2 yrs until the market is on the upswing so you are able to actually sell the house in a reasonable period of time – lots of people lose money flipping if they can’t sell fast – they have to pay the mortgage, which eats into their projected profit – too many months of that and you’ve lost money
References :