real estate,flipping houses,income property?

Question

I live in chicago and just bought a home less than a year ago(no money down)
I would like to buy another house to flip (no money down)(stricly income purchase)
are their any programs out there that would let me buy a second home after buying a home < 1 year of buying my first one with no money down

Answer 1

You can always purchase another home. If you are not planning to live in it you would apply for a non-owner occupied loan. The rates are typically higher for this type of purchase. Additionally the amount a lender would provide is also typically less due to the increased risk. You mention doing improvements and flipping it. There are some risks involved with this type of venture. First a new lender may not wish to finance a property they know will be sold shortly after granting you financing as it is not cost effective for them. Also after you renovate the home the new purchasers may have trouble obtaining financing since you purchased it less than 12 months ago. If you do re-sell the investment property in less than 12 months the new purchasers lender may require evidence of improvements to the home to justify the increase in value from the time you bought it to the time you re-sell it. I recommend you keep all receipts and cancelled checks you obtain during renovation to adequately substantiate the value increase. House flipping is not easy task. You can lose your shirt if you are not careful.

Answer 2

DC Fawcett Real Estate Tips



Money earned by means of real estate flipping houses drastically changes everyone’s lives. For some, it is their profession and for others, it is a hobby. However, if you are making your career in this endeavor, it is the surest way of earning a steady income. A person can earn without going anywhere near the office or industrial park. Even if a person works for the entire month, their income does not match with real estate income.



Mistakes made when flipping a house

Paying more than actual price



The purpose for doing house flipping business is to make profits. However, when you pay more than the actual price and fail to negotiate, at the time of buying it, the profit reduces when you sell them. To turn it into real profit, one needs to study the real estate market. A lot of research has to be made before buying the property such as comparing at what price your neighbor had brought.

Excess Investment



Another common misstate is investing too much money for personal finances. Even if the property is purchased at the said price, you lose out on your savings. Instead of that if you go for loans, there person need not repay the entire amount in one go.

Incorrect cost estimation



After getting financial assistance, make sure that project lasts long as you would need a good budget to cover for the renovations and little left over for contingencies.

Leaving important upgrades



There is a saying that one should be shrewd with respect to money matters. However, keeping this thing in mind, people tend to go in for cheaper options, though certain upgrades cannot be ignored. The buyers focus on kitchen, bathroom and master suite. At the most, you can reduce the cost on stops on these rooms.

Neighborhood Ignorance



Neighborhood awareness plays a very important role in house flipping. If your house is surrounded with ugly houses & surroundings, flipping becomes difficult.



Getting into the deal without house flipping team – Though, it is possible to do it independently, having a team is even better to guide you when you are new in this line. You can trust



Real estate attorneys

Certified public accountants

General Contractors

Real estate agents

Lenders

Answer 3

You could prob. refinance your existing home, since you didn't put any money down the rate is high, why not do a rate-to-term, get some cash out and use that to buy the investment home, since most lenders will req. u 2 put down 10% on the investment purchase. E-mail me if u wish, coz I was trying 2 get a hold of a friend who knows alot about this and I left him a msg., my email is [e-mail]., when he calls I'll forward u the info..thanks!

Answer 4

what type of flipping are you trying to do??

i would look into a line of credit to buy all cash

and use to fix.

if you are looking very short term you could find a hard money lender or a partner with money to split profits.

if you are looking to wholesale then you don't need money.

this won't warrant as much cash but will still be good to build capital.



joe

Answer 5

if your credit is good you can buy anything also depends on your debit to income ratio

Answer 6

try this site http://www.allsolutionsnetwork.com/cgi-bin/d.cgi/CB9051/no_down_loans.htm