Hey I was wondering if anyone had some tips on starting a company to flip houses. I run a company now that has many divisions and was going to make another division of it to do the house flipping and buying up real estate. I have a past in doing freelance marketing and project management for companies such as Sony, Grind King Skateboard, Nike, Epic Records, and many more large companies. I have a father who was a past real estate agent and still has his license so that part is taken care of plus his info on real estate. Might have a possible investor but I was wondering if there is a way to get the first home for very little money. Thanks for your expertise.

define flipping?

fixing houses or assigning contracts/wholesaling?

Buying houses cheap and doing cosmetic work and small work and reselling quickly. I do not have a lot of extra money to do this so I thought getting foreclosed homes but I see all these websites saying you can get houses for $1000 or so but is this just a fake thing to sell E-Books? Looking for any advice the experts have.

what are your plans if it doesnt sell quickly? got room for holding costs? let me know if you need an alternative exit strategy with your flips if you need to hold

Right now that is what I am basically doing I am very young but already have a few successful businesses but I am looking to spend VERY LITTLE money on getting my first house and getting that started. I would make sure in budgeting the house to plan to keep it one more month then I would think was possible to be safe. Would love some ideas on how I could get a house cheap and hold it for cheap.

The best advice is that from experience. I have been in the financial industry for quite a while. I have seen the good the ugly and the horrid as you can say. The industry is not looking to good as of right now, HOWEVER people like you and me can use that to our advantage. I will tell you this I currently own a one stop boutique as you can put it, where we do everything in regards to finance. Today the mortgage market TANKED horribly. The subprime lenders are going belly up and many huge companies such as Goldman Sachs and JP Morgan are not doing good either. Yet the best business right now is that invovled in buy properties that are currently foreclousing. The mortgage industry is collapsing because of the inability of individuals to pay their mortgages. Today the foreclosure rate is on a constant rise. For example here in NY the foreclosure rate reached over 300% higher since January, which is extreme. In other areas of the country it gets worse.

So right now individuals that do make the most amount of money in a recession period are those that buy these properties, properties that are 65% LTV or lower. When you buy a property 65% LTV or less you are able to pull out money and do creative financing. For example a property that is worth 500,000, you can pull out for 250,000. After that you have several options. I will start with the first and basic one. You do a refinance to pull out equity. So now you have a property at 50 LTV, you pull out a total of 150,000 creating a total loan amount of 400,000. Now you have a property at 80 LTV and 150,000 in your hands. You put the property back on the market because it will still grab attention to many. You also have a 150,000 in your pocket. Now on a 400 k mortgage figuring roughly 7 percent, your payment is 2661. So what you do is you take 12 months of mortgage payment and put it a side. That is a total of 31,932. So now you are free and clear for one year if someone does not purchase it. 150,000 - 31,932 = 118,068 is what you have aviable to leverage. now you are able to buy more property. and turn this money around to make ALOT more.

There are many solutions and many strategies in buying forecloused property.

If you have any questions or would like to learn a little more feel free to give me a call. I have no problem in helping someone out. I was given help when I was younger and just starting and I feel it is my duty to help others.

Looking forward to speaking with you soon.
___________________
Paul S.
Equity Security
Office: (718) 715-4110
Fax: (718) 987-1098
Email: equitysecurity@gmail.com

I myself really have the desire to start my own company starting with flipping houses.

EquitySecurity, it is very nice of you to offer some help to people starting out. I'm wondering if I can join the loop and get in touch with you every now and then.

In this industry today buy and selling property under market value is the best that you can do. Especially with everything that had happened yesterday in the mortgage market.

Sure feel free to give me a call anytime.

Forward me your contact information on my email and we will put our heads together. Knowledge is Power

---------------
Paul S.
Equity Security
Office: (718) 715-4110
Fax: (718) 987-1098
Email: equitysecurity@gmail.com

I am doing flipping myself.
How I started it?
Found properties below market. Fixed them and sold them.
I would suggest you that you first find a good deal fix the property and sell it.
You do it a few times then create a corp. for tax purposes.

Great! I will make sure I get in touch with you!

What does "LTV" mean? This is a very interesting thread...

LTV is Loan To Value Ratio