Question by work 4 self: Is it wise to take out a loan to start flipping houses in Virginia?
I want to start flipping houses, yesterday! I’ve read up on how many people started and it seems that they begin with money they had saved or profit made from selling their own home. Well, I can’t sell my own home for another 4 years. I do have some savings but if I deplete my savings, I won’t have money to fall back on to make mortgage payments while I am waiting for the house to sell. Therefore, my only other alternative (that I can think of) is to get a loan from the bank to buy a property. My concern is, what are the chances of making a profit from the sale, after I have paid the bank their money back with interest? Has anyone started out in the business like that and found it successful? Any other suggestions?
Answer by gbsunshine
I am a title agent in WI and I have many investors that start out with loans. Actually I have one investor that buys all of his homes to flip with a loan from the bank. What your best bet to do is, buy a house and sell is to someone on a land contract. Meaning they would be sort of renting it from you with the intention of buying it within the first two years of occupying the residence. That way they are making the mortgage payment for you while they are renting and at the end of two years you make a nice profit of about $ 10,000-$ 15,000 without having to do anything to the property and no out of pocket expenses except maybe a little painting or carpeting. Look into it, it’s very profitable this way.
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