Starting a property flipping business

[petrolheadno1]

My goal is to start up a property flipping business. This is where I find properties which are run down and flip them at a higher price. 

Where can I find investors to fund my deals. Even if they don't have the money, I'd be happy to sell on the deal to then for a finders fee so what a deal sourcer does. For my first deal as Im new to this I am happy to charge £500. 

Any tips on how I can find investors, and start making money form flips and property deal sourcing?

[Wiseman2]

Try to avoid get rich quick scams. There's a lot of them out there that sound like easy money. It's similar to those "other people's money" type scams. Try seeing a financial advisor and CPA for ways to invest in realistic options and build wealth.

[petrolheadno1]

15 minutes ago, Wiseman2 said:

Try to avoid get rich quick scams. There's a lot of them out there that sound like easy money. It's similar to those "other people's money" type scams. Try seeing a financial advisor and CPA for ways to invest in realistic options and build wealth.

Ok fair enough. There are lots of podcasts and youtube videos of people who got rich using this concept of other peoples money including testimonies of how they did it lol. 

[Wiseman2]

12 minutes ago, petrolheadno1 said:

Ok fair enough. There are lots of podcasts and youtube videos of people who got rich using this concept of other peoples money including testimonies of how they did it lol. 

But in reality many people who attempt these scams are sued for fraud more often than not. Please don't fall for scams. What exactly is your objection to appropriate investments and wealth building through legitimate means? If you are looking for "investors" on here, you may as well move on.

Edited September 22, 2023 by Wiseman2

[petrolheadno1]

4 minutes ago, Wiseman2 said:

But in reality many people who attempt these scams are sued for fraud more often than not. Please don't fall for scams. What exactly is your objection to appropriate investments and wealth building through legitimate means? If you are looking for "investors" on here, you may as well move on.

Not really investors specifically on this forum, advice on where I can find them?

[basil67]

Flipping properties like this is common where I live. But there's no top man.  The investor buys it themselves, hires the trades people and flips it.  They don't invest in someone else's project.   I can't see the benefit for an investor going through you.....and they'd be bidding against you at auction/sale anyway

 

Edited September 22, 2023 by basil67

[d0nnivain]

There are dozens of seminars you can take & books you can read about this.  I think the Property Brothers from TV offer one.    There are angel investors  & REITs that specialize in this kind of money.    I found dozens of articles after a quick internet search.  You need to be well versed in the downside, everything that can go wrong before you start down this risky road.  

I assume you need a lawyer to draft the prospectus & a contract.  You need to understand what laws & regulations govern the financial relationships you are trying to create. 

I suspect the best way to attract investors is to have a proven track record of success.  I would start small with a self financed project backed by the bank of dear old mom & dad or another close friend, then showcase that for your next venture.    Another option may be a co-signed hard money loan.  

[basil67]

12 hours ago, d0nnivain said:

I suspect the best way to attract investors is to have a proven track record of success.  I would start small with a self financed project backed by the bank of dear old mom & dad or another close friend, then showcase that for your next venture.    Another option may be a co-signed hard money loan.  

Yes, this is super important.  An investor will want to see that you have a good eye for finding the right property in the right place, as well as a good eye for design and ability to coordinate and work with tradespeople. 

[Lotsgoingon]

I'm sure that info is on the web and in books. But ... I don't even know this field and I know that the vast majority of flippers put up their own money. All the people I've heard about and known who do this invest their own money. 

Part of the education on flipping comes from having your own money on the line. That money you are risking brings some realism to your judgment that this house will really be worth value X after four years. That profession is notorious for wiping out unrealistic optimists who don't do rigorous research and think realistically about what value a house might bring.