If you want to invest in real estate, the easiest way to get into this is flipping houses. To note is that even the houses that are not in the best condition do not sell dirt cheap. Fix and flip means you will do some repair before you resell the house. Even so, a lot of people are struggling to get by and on top of their own needs, they may not be able to support buying a home and fixing it for resell. If there is one thing you should not let stand between you and your finances is lack of money. You should apply for a loan to finance the process. Because it does not take a lot of time to fix and sell the house, you will be able to repay the loan in a short time. If after you repay the loan you wish to buy another property, you can then make a fresh application. There is a low chance for you to lose the house you were eyeing while waiting for the loan to be approved because the processing time is usually very short. In some cases, the money will be released in less than 7 working days. You will have enough working capital for your business despite your bank account balance. Most bank loans take one month for approval. This is not a good option when it comes to fix & flip business.
There will be no need for you to worry about your debt-to-income ratio, the income you are getting or even the credit score. No bank will give you a loan without considering this. These funding options are important to people who want to offset their fix & flip businesses and they cannot turn to the bank. However, remember that you have to present your plan on how you are going to do the flip. As long as you have a good plan that will give you great returns you will get funding.
Also, this process is much simpler because there are no brokers involved. The more the people are involved in the deal the more expensive it will be for you because each of them will have to be compensated. In addition, you can take bigger risks when you have funding in your fix & flip business as opposed to the situation if you were depending on your savings only. With higher risks comes higher returns. Thus, if your heart is in fix & flip business, you just have to find a firm that offers funding for these kinds of business.