How much money do i need to start flipping !
by Allen
(roanoke, va)
how much money do i need in my bank account to get started flipping ?
| LM says: Allen, without you providing more details it's just not possible for me to answer your question. It depends on your market, amount of repairs needed, your personal financial situation and more. There are cities where you can buy a house for $30,000 and others' where you can't get anything for less than $200k! Then you got to add the cost of renovations, holding time, finance costs, etc. I suggest you do some reverse engineering to figure out how much money you need. First get a good idea of what the house you want to flip will sell for once it's fixed up. Then calculate the cost of repairs . Add in any costs for financing and hold time plus realtor fees and any staging or other selling costs. That will help you determine your costs, then add in the profit you want to make. This will give you an idea of how much money you need to have to make the flip. wether you have it in the bank or borrow it (which I discourage) is up to you but you will have a figure at this point to answer your question. If you look at the detailed financials of my flips it will give you an idea of the cash I had to have on hand to be able to make those deals happen. For example: http://www.wealth-steps.com/making-money-with-real-estate.html You can see all my deals here: http://www.wealth-steps.com/house-flipping.html -- Luis |
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