I an in the mortgage industry and understand that in order to get a mortgage on a property the property must be in good living condition. Some of the flips I see on FTH or The Real Deal are usually in bad condition.

I am interested in finding out how funds for flips are obtained. Are they from personal loans? I want to see what my options are as far as trying to get funding. Any kind of suggestion is greatly appreciated.

PRIVATE investors. You can only take a personal loan if you have assets to lien on. You really need to be liquid like Richard Davis. Or guys like him. Investors are gonna want their money pretaxed. Unless you got a granny in the attic with a trunk of money. You could be gambling with your entire way of life, if you don't watch your step. If your not in realestate, construction, or have deep pockets you need to stay out of the flipping market.

I DISAGREE WHOLE HEARTEDLY!!!! In my opinion, flipping, and real estate in general, are the only to really make money. If you have a good credit history, and a solid employment history, then you should have no problem getting a loan. Now as far as buying a house thats not in livable condition... My first house was a foreclosed crack house. Doors kicked in, windows shot out, copper plumbing for the heating system had been ripped out... etc. I got financed. My bank did a construction loan in conjunction with the mortgage, basically lending me an extra $17K to renovate the house. I did almost all of the work myself, and in the end made a modest profit (approx. $30K). I took that equity, and am buying a 4-plex. The 4-plex is fully rented, and as each tenants lease expires, I will update each unit, and hopefully put it back on the market in about 18-24 months or so when the market rebounds a little.

To DARETHEYGO... you seem to be the condescending voice of negativity on here... granted you seem to be alot more experienced than me, but you don't take into account the individuals ambition and work ethic. Hard workers CAN get ahead as long as they are smart.
Try offering some advice without all the negativity... words of caution tempered by years of experience is one thing, but telling someone to stay out of flipping because its too hard or too costly... I make less than $11.00 an hour at my job. Better than minimum wage, but I certainly don't have "deep pockets". So if I can do it just about anyone can.

Reray Im not negative. Facts are facts. I'm glad your project made you money, it worked Because you lived there while you did it. It never would have happened if you didn't live there. It takes money or assets to secure a propper loan to take on a project or private investors. I stand by what I said.

Your modest profit ( 30K ) is only non taxable if you roll it into a primary residence reray.

If you purchass that 4plex the 30K will be taxable. ( 38% to the man ) depending on your local tax and sate tax rates.

Unless of corse you file for a corperation and set up a proerty investment company. Like Land Mark proerties. Then the 30K would be tax differed because you used it to purchass more property.

I know the in's and the Out's More people squander life savings, cash out 401k's and sacrifice relationships to try and make the quick buck. I have been involved with all kinds of bad situaions where I was hired to come in and finish projects. It's not a comfortable situation. Just because the lettus is bright green on the outside, doesn't mean it can't be brown all he way to the core. ( refferance to a flip house )


Don't be jaded by the qick dollar.