I have lurked here for a while, but this is my first post. I am looking to get into the rehab/flipping business but I really don’t know how to get started own my own. I have read a couple of books, but there is no substitute for real world experience.
I feel like I have the resources to get a deal done, but no experience. My wife and I have good credit (over 800). I have $25,000 available from a HELOC. I also have a couple of credit cards that I could probably pull 10 to $20,000 from if needed.
My goal is to purchase homes in the lower price range (25-60k). Rehab and sell for a minimum profit of 10K per house.
what should my first course of action be? Should I form a LLC?
The first thing that you need to do is visit the local area Real Estate Investors Club/Association, which is the Winston-Salem REIA, I believe.
The last I checked, they meet the 1st Monday of the month.
If you want, come visit our local REIA, too. The Catawba Valley REIA meets the 3rd Monday of the month in Hickory, NC about an hour or so from you. Contact me if interested.
From there, you can find investors that work in your area and get help from them.
No, you do not need to form an LLC. No need to put money into something until you actually need it. Get a few deals under your belt, then if you decide you like RE, you can worry about if you want an LLC or not.
As far as your goal on house buying; What is the market for $25-60K houses? Is it a good selling price range for your area? Seems to me that it may be on the low end of the house range.
I would recommend that you proceed very cautiously using a HELOC and using credit cards for real estate. The HELOC is tied to the equity in your own home and I would never recommend putting your own property at risk with an investment.
Try to find finanacing htat would require little down from you…
Have you looked into HUD homes? There are several listed in your area.