Line Of Credit For Flipping Houses

just outta college, have some debt, and a credit line. Got a job paying 31k to start. I want to pay off my debt and use my credit line to buy (mortagage) a house. I plan on living with my parents to save money while workin on my project/moving into the house i buy and do repairs as I can. Ive worked installing flooring for 4 years now, and my grandfather owns a flooring business so I get material at cost and the labour is no problem...basically my question is what would you do if you were me? /what courses could I take; real estate courses ect. I want to do this and I would love input, suggestions, hints warning ect. Ive posted a similar less detailed question and got some good answers (along with some poor ones)..those tv shows make it look so easy, why cant I do it? cheers...all answers welcome.

1) Flipping isn't easy. For every one guy who makes it, 50 fail.
2) Do your homework in the area you want to invest in. Know all the ordinances for your target city, get to know all the people in the Planning and Permits departments, and understand any political issues that might crop up (citizen bias against reconstruction, etc).
3) Get your real estate agents license (broker is better but much harder) and go to work with a broker who will teach you the "tricks of the trade".
4) Get to know the construction management side of the business, not just "the trades". Being in the trades will get you respect from the workers but knowing how to plan building or renovation is what will make you money.
5) Be prepared for a lot of hard work and stress getting started.

Being a real estate developer can be very rewarding but it's not easy.

2006-07-23 19:38:33 by llllllllllllllllll

learntofliprealestate.com www.brianandryan.com "how to flip houses" "multi family houses" multis "flipping houses&quot ...

I am really looking for someone to help me with either money or work or both. If not that line of work i need to keep my small house for my daughter and I and I need to work inside. Make maybe about 200-300 a week would pay the bills. Thanks everyone. l am living on credit cards

First rule: Stop calling it "flipping houses." That term has given the industry a bad name and is insulting to actual investors. The proper word is "wholesaling," and you will be a "wholesaler" of houses.

Secondly, go to this free expert forum, ask your question there and get great advice from pros: http://www.creonline.com

2007-01-28 08:44:53 by craftaholic

My grandfather is getting a equity line of credit for $50,000. Is the 30 year fixed good? Also, should he look into getting an increase and start flipping properties? He owns his house and is done paying payments. He is going to make minor repairs on his house.

Does he realize that the line of credit has to be paid back and his house can be foreclosed upon if he were somehow unable to make payments?

Any fixed rate apr is better than an adjustable. Right now with the way the economy is, flipping properties might not be as equitable as it was.

2009-07-28 11:46:03 by knb901

I only have 1 year with corp.. What is it that i have to do? How long does it take? I am a realtor and i buy real estate. I flip the properties, but now i want to build a house ($250K) and i want to get a large amount of credit line to keep investing. I will have $100K once i sell one of my properties, which is in process and my corporation will have an asset of $40K.

Let me talk about your credit line first, then your industry.

To get a credit line for a business as high as you say you want it from a lender, you really need to show your financial need and potential business growth. Personal good credit helps, and business referrals, and other lines of credit. Assuming that your business is BOOMING, you need to show this on paper. Banks and Lenders usually ask for business plans, projected business growth information, your future plans with your business, etc. If you have 100K, you might be able to shop around for a good secure line of credit. When I say shop around, I mean find out who can give you the best deal, services, payment plan, low fees, etc. Get your paperwork together before you apply for loans or lines of credit.

As to your industry, real state is not doing very good these days. As we all know, selling homes new or old is hard. Banks and Lenders take this into consideration when issuing loans for the real state industry. If your business is booming due to growing real state market in your state, city or whatever, you need to show this.

Also, before you go in and apply for a loan or line of credit, ask what information they will need from you and be prepared. Getting your "stuff" ready can take anywhere from 2 weeks to months. You should also consider other alternatives to getting a 250k line of credit. Have you ever considered a partnership or business merge with someone with cash? It can be long term or short term and it doesn't have to be permanent.

Good Luck

2007-09-30 06:40:01 by Simon T

I found a house that is foreclosed and the property value is about $80 to 100 k more. I also found someone who will buy it from me. so I can make a 80 to 100k profit right away. Can I purchase a foreclose house and then flip it within a month or two? if i get a no prepayment penalty mortgage...do i need to hold it for a certain time?....also, if i have to wait to sell it, in the meantime can i refinance to pull money out?...like a home equity line of credit while i wait and how long do i have to wait to refi for heloc?...i live in miami, florida.
ps. thanks for the info guys...more details..i did research, it has no liens, the property value is what i said it was...it's not in foreclosure, but in a short sale..it's in good condition, it's not only 5 years old,no leaks (had inspector out to see it)..the person that is buying it off me is from out of town and is approved by a bank for the amount i want..

as for the quick refi idea...i thought that banks went by what the property value is appraised at to refinance my home? the property is appraised for close to 80k more than what i'm buying it for

Lending has changed dramatically in the last 6 months- one year and it may be that the buyer who purchases from you can not get a loan due to the fact that you only had your loan for a month or two. There can be restrictions here so check with a knowledgeable lender. I am an investor and use my lender for both purchases and info. His name is David Fleming and he is actually in FL. Contact me for his info.

Another option would be to get the property under contract and then assign the contract for a fee (make sure in the contract that you write in that the contract can be assigned.
I may be interested in looking at your deal as well. Contact me.

2008-04-01 12:42:22 by Gabriel D