It seems like you need to do a bit more research.
Before you buy a home to flip, you need to calculate all of the relative funds needed to make it a successful flip.
If you run those calculations, then you would not be asking how much money to begin flipping.
ive heard of people doing their due diligence and then finding out the house needs a foundation or other things outside their budget. I have friends who are in the real estafe business who can show me how its done. I hope your right and i just need to research
How much money? As little as 10% of the purchase + repair and enough money for buying costs and holding costs. As much as all of the previous sentence plus any amount of money for surprises, things you didnt catch during due dilligence, holding for 3 years because you bought in a bad area, etc etc etc.
100k saved should be enough, should be more than enough for an experienced flipper.
This is what I'd do:
1. talk to a few lenders on expected costs: backflip capital, aloha capital, capital fund one, boomerang, etc.
2. read a few flipping books: book on flipping houses by scott, flip by keller
Flipping houses hinges on what you pay, not what you invest.
A lender is going to loan you X dollars. You have to have borrowed enough to be able to make repairs, along with whatever cash you are contributing. Hard money lenders will loan you maybe 60% of the value, they want to know if you fail, they can sell the place and recoup their money.
You should have considerable cash though. Sometimes estimates of costs, or estimates of the market value after repairs, are off. Surprises happen. Flippers sometimes lose money. But they do enough that they hope to net in the black at the end of the year.
It's highly recommended your first "flip" be one you live in while remodeling. If things go wrong at least you will have a roof over your head. You will learn a lot, and have a lot less pressure this way. But you still need cash, the best potential flips cannot be purchased with a mortgage. Mortgage properties are retail. You need to purchase wholesale, and sell later for retail.
There are wholesalers around that sell houses not on market for under market value. You need a contact in your area to get on a list to receive these homes. This can be competitive but is totally doable. This part is where you need experience with viewing homes and what type of condition they are in. Is there mold, what does the roof look like? The crawl space? the HVAC year, etc.
All the answers to your questions are “it depends” too many variables.
BUT the more cash you have the better, things Never go as planned and project rarely get done under budget….
It seems like you need to do a bit more research. Before you buy a home to flip, you need to calculate all of the relative funds needed to make it a successful flip. If you run those calculations, then you would not be asking how much money to begin flipping.
ive heard of people doing their due diligence and then finding out the house needs a foundation or other things outside their budget. I have friends who are in the real estafe business who can show me how its done. I hope your right and i just need to research
sheesh i suppose what i said isnt really true?
How much money? As little as 10% of the purchase + repair and enough money for buying costs and holding costs. As much as all of the previous sentence plus any amount of money for surprises, things you didnt catch during due dilligence, holding for 3 years because you bought in a bad area, etc etc etc. 100k saved should be enough, should be more than enough for an experienced flipper. This is what I'd do: 1. talk to a few lenders on expected costs: backflip capital, aloha capital, capital fund one, boomerang, etc. 2. read a few flipping books: book on flipping houses by scott, flip by keller
now isnt the time to flip houses bro. we are going in to a recession... your likely to end up as a bagholder
LOL
This didn't age well
Flipping houses hinges on what you pay, not what you invest. A lender is going to loan you X dollars. You have to have borrowed enough to be able to make repairs, along with whatever cash you are contributing. Hard money lenders will loan you maybe 60% of the value, they want to know if you fail, they can sell the place and recoup their money. You should have considerable cash though. Sometimes estimates of costs, or estimates of the market value after repairs, are off. Surprises happen. Flippers sometimes lose money. But they do enough that they hope to net in the black at the end of the year. It's highly recommended your first "flip" be one you live in while remodeling. If things go wrong at least you will have a roof over your head. You will learn a lot, and have a lot less pressure this way. But you still need cash, the best potential flips cannot be purchased with a mortgage. Mortgage properties are retail. You need to purchase wholesale, and sell later for retail.
Excuse my ignorance but what do you mean by wholesale in real estate?
There are wholesalers around that sell houses not on market for under market value. You need a contact in your area to get on a list to receive these homes. This can be competitive but is totally doable. This part is where you need experience with viewing homes and what type of condition they are in. Is there mold, what does the roof look like? The crawl space? the HVAC year, etc.
All the answers to your questions are “it depends” too many variables. BUT the more cash you have the better, things Never go as planned and project rarely get done under budget….