5 SIMPLE TIPS FOR GETTING STARTED FLIPPING HOUSES DANNY JOHNSON
money, something we are all afraid of for good reason.
This is why I really hate all of these fancy techniques people come up with to teach others. I don't think these
people ever even use these techniques because most of them are very dangerous and only sound good on
paper. In real life, things rarely work out exactly as planned and many of these 'techniques' require everything to
work out perfectly.
5. You Don't Need a Lot of Money to Get Started
Contrary to popular belief, you don't need a lot of money to flip houses. There are several ways to start flipping
without much money.
As I mentioned before, buying directly from homeowners allows you to buy houses with small amounts of
earnest money. This means you can put houses under contract for as little as $1 (for earnest money - I typically
give $25 for earnest money).
You can close on the house, in which case you need to have funds to buy it. Conventional loans might be out of
the question for you, so you can use a hard money lender. These are lenders that lend money for investment
properties for the short term. They are call 'hard' money lenders because they typically charge higher interest
rates and loan fees. Just include those costs in your buying formula (buy for cheaper) and you can make it
work.
Or, you could decide not to close
on the house (e.g. decide not to fix
it up and sell it to make a large
profit),
and
instead
wholesale it.
decide
to
You don't have to
close if you can find a buyer that is
willing to buy the contract from you.
This
is
called
assigning
the
contract. Your investor buyer will
pay you for selling the contract to
them.
People routinely make
thousands
and
even
tens
of
thousands simply by assigning
contracts.