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Best way to start wholesaling real estate?
Can I get a commercial loan without 25% down?
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Subject Expert
How much do you know about real estate and/or the costs / process / timelines of home improvements?
Most flippers don’t make money on their first flip. I’d suggest doing 1 or 2 while still keeping your consulting role before you go full time. Do you have the funds to handle a flip on your own?
Flipping looks easy on TV, but it’s much harder in real life (especially in the current financial market).
Subject Expert
You don’t necessarily need your real estate license to flip properties. There are some small cost savings if you act as your own realtor, but that may not actually help you until you start to hit scale.
I’ve used a realtor to buy some rental properties, and the realtor had an existing Rolodex of contractors which made it easy for me to get started without having to track down and vet contractors. IMO, that’s worth paying the realtor fee when you’re getting started over acting as your own realtor to save the fees but starting with an empty Rolodex.
I currently work in accounting with 10+ rental units on the side and definitely agree with PM1. Unless you have so much money that you could retire without flipping, I think quitting to get into it with no experience is not a great idea.
I think learning as much as you can and then doing at least 1-2 flips while you’re still employed full time should be minimum requirements. Plus, it’s important to keep in mind that at the end of the day flipping is still a job, and if you want more free time I would consider some buy and hold rentals as well.
Feel free to reply with any other specific questions.
5% down is for multi-family owner-occupied through Fannie Mae. It’s a pretty standard product so if you want to buy 2-4 units and live in one and rent out the others most banks should have the product. If it’s just an investment and you won’t live in it, very difficult to get anything less than 20-25% down without paying crazy points or fees.