House flipping is a smart investment once people are settled into the house flipping market. However, many investors who want to get into the business of flipping houses cannot figure out to do so without a large initial payment. The task seems daunting, but here are some tips for getting into the house flipping market with little money out of your pocket.
Study house flipping.
If you are wanting to get into house flipping without putting down much of your own money then you will need to know what you are doing before getting started. You will not be able to find anyone to help you invest if you have no idea what you are doing, so study what you will need to put into the process. Additionally, this will help you to know what sort of properties are the best investment. Houses priced below $50,000 can actually see negative returns from a flip, but houses from $100,000 to $200,000 can see returns of up to 44%. Research what types of homes are in your area and what sort of return you can expect from different properties.
Partner with another investor.
Some investors will have money, but not the time to put towards ensuring a house flip goes over well. Try finding friends or family who are in a situation like this and partner with them. While you perform the work towards flipping a house, they will provide the money up front that you do not have to enter into the investment. Outside of friends or family, some private investors may also be interested in your work once they hear that you are getting into the house flipping world. Talk to everyone you can in order to find people to help you invest.
Take what you can get.
Partnering with other investors, as previously mentioned, is a strong way of getting into the market for house flipping. However, the initial cost may be too high for a first-time investor to want to handle. You should instead try to have sources of income coming from multiple places. For example, you could have half of your money come from a private investor and half of your money come from your parents. This split will help to ensure you find the money you need in order to get started flipping houses.
Attend property auctions.
If you are able to find investors then you will still need to be able to find a property that you can afford to purchase as well as make a decent profit from. Attending property auctions is a smart way to find properties to purchase for much lower than they would normally sell, making your profits that much larger once you sell the property again. Sometimes you can even find properties that are already in fairly decent condition and were simply foreclosed on due to financial struggles. These properties already have much of the work done and will provide faster returns on your money.
