Do I need my own cash or credit to flip houses? The answer is yes and no. Let me explain. You see, creative real estate is the process of buying houses without using any of your own cash or credit. For some WIERD reason, some people will still use their own resources to do it, but it’s not necessary. It’s all about being creative and finding alternative ways to make the deal happen.
To make this happen, you do need to be trained on how to construct deals with sellers that don’t require any money. This could be something as simple as getting a contract to purchase the property with no earnest money, all the way to Owner Financing with no money down. There’s many ways in between. I’ve bought and sold over 400 houses, and have never used any of my own cash or credit to buy a single one of them.
On the other hand, you DO need your own cash or credit to fund your real estate business. Being in business for yourself isn’t free. This is a bona fide business, and it costs money to run it. People send me emails all the time telling me that they want to get into the business, but they don’t have money. It’s so hard to tell them that they’re not going to make it very far without SOME type of budget for marketing and operating.
Ok, So how much money do I need?
If you’re just starting to research the creative real estate business and trying to set a budget for yourself, my recommendation is at least $500 per month. An even better and more realistic budget is $1,000 per month, but I know that’s tough for people who are just starting out. This will cover at the BARE MINIMUM a marketing plan that will generate seller leads. Without that, you have nothing. Also, spending $500 one time and expecting that to get you off your feet and on your way to financial freedom, it ain’t gonna happen. Yes, you MIGHT get lucky and land a killer wholesale deal that you can flip quickly and make $5,000.00 – but you can’t rely on luck. You CAN rely on consistency. So that’s what you need to plan on.