Business & Finance Small Business

Finding financiers for your House Flipping project

In most of the cases, unless you have enough cash to start working alone, you need a source of money to start buying properties. It is possible that you tap into your savings account but if you are strongly backed up by financial investors you have the chance to get the capital you need to leverage your investment. The problem here is to find the person to ask for this investment. Following we present you a list of possible sources to start with:

1) Friends, family or your attorney: This people already know you, which means that they already trust on you.

2) Make marketing of yourself and tell everybody that you flip houses, it could be possible that an investor hear about this and contact you to make business.

3) Doctors, dentists and lawyers: these "highly paid" professionals usually are looking for new ways to get a better return of investment from their money.

It does not matter which is your source of capital, it will need to have a mortgage in the first position in order to protect the investment. If you are going to invest in foreclosure, be sure that you buy just a first mortgage and not a second one.

If after all your efforts to get investors for your projects you are still short on cash, consider the option to approach a hard money lender. They could be a good option to start but just for the short term due to the high interest rates of the loans.

As you can see, finding an investor for your house flipping projects could be a little difficult at the beginning, but keep working hard and you will see that this "hard work" will draw investors to you who will be willing to share the risk of the project with you.
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