Amber’s Biz Tip: How Much Money Do You Need to Get Started?

By Amber Miller

Here is the beautiful thing about making a decision. Once you decide to start, then you still actually have time before other things have to be done. Here’s an example…once you decide you are going to flip a house in the next 6-12 months, you don’t have to have all the answers at that moment.

The truth is, you can make a decision with no money. That is why you don’t necessarily need money to decide to get started. Here are all of the other areas where it costs zero dollars to start to move towards your goal of flipping a house.

Market Research

Getting to know your market requires time, not money. At any time you can pull up any number of real estate websites (Zillow, Realtor, Redfin, etc.) and access a ton of information on your local market.

Driving Around

Another zero cost activity that can provide great insight is driving around. If you are driving through areas that you may be interested in, you are going to gain a perspective, and potentially information that you would not know otherwise. Are there a lot of homes that are rundown? Are there a lot of homes for sale? How is the traffic? Are there apartments or commercial areas that are close to residential homes? Are there busy roads you need to consider?

Networking

I am with you. This one was not a favorite of mine either: networking. However, there is no one single place you are going to meet more people who are doing (or trying) to do what you are. The key is to set yourself up with a goal before you get there. I used to tell myself that I needed to meet 5 new people at each meeting. There are a few people that are repeating attendees so you will notice who attends all the meetings.

For the time that you invest in these, you will find out some information in a variety of areas. Who the people are who are doing business, who the wholesalers are, and who the lenders are. Of these, the most important, is the lending portion. When you are getting started and you don’t have a track record you may have to consider using lenders who specialize in flips. They often sponsor or speak at real estate investing events which is a great way to connect.

Rather than focusing on what you don’t have lined up when you are getting started, look at the areas where you can make progress quickly. You will be surprised at how putting together just these few small steps can build the foundation for you to achieve that house flipping goal.