Home Buying in Richmond>Question Details

Ronni, Both Buyer and Seller in Richmond, VA

I am a home owner and I am ready to buy my first investment property. I want to flip it ( buy it fix it sell it). Who does loans that will allow me?

Asked by Ronni, Richmond, VA Fri Jan 4, 2013

to do this or where can get I get the funding? Also is it best to be set up as a corporation to do multiple homes? Thanks so much

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5
Scott Glass’ answer
I'm an agent here in the Richmond area and would be happy to help you find some properties and put you in touch with local lenders who can help. Some will allow investors to put down just 10% for investment properties. Please feel free to call me.
Web Reference: http://Scottglass.lnf.com
0 votes Thank Flag Link Sat Jan 5, 2013
Also, keep in mind that there are rules regarding how long you need to wait before selling a flipped property depending on your situation. Be prepared for that.
0 votes Thank Flag Link Sat Mar 2, 2013
We've 'flipped' before and there are several ways to finance this type of transaction. There is also research to do ahead of time. You can set up a corp but whether or not it's best depends on your personal tax situation and that is something you want to talk to a tax person about. It will provide you some protection. You may want to try your hand at one first and see how it goes - learn some lessons and find out how well you work with the group of people you surround yourself with.

Good luck!
0 votes Thank Flag Link Sat Mar 2, 2013
I know a local lender contact that can help you with loans on investment properties. However, I think that the downpayment is higher than Scott quoted below. The interest rates are great now. You just need to check your debt to income ratio to see how much you will qualify to borrow. You will also need cash left over to do the necessary repairs and money to pay the mortgage payments until the property sells. There are other things to consider when selling a "flip" such as the purchaser's loan guidelines. I have a lot of information that I can share with you about that as well. Just pop me and email or give me a call and I would be happy to help you. Tina Beasley, Resource Realty Services, 804-972-9927
0 votes Thank Flag Link Fri Mar 1, 2013
It all depends on your credit situation and income ratios. In most situations you are going to be required to put down a mininum of 20% down on your second property and have plenty of assets or income to prove affordability.

As for setting up corporations, I personally would set up a LLC for each property as that gives you Limited Liability compared to purchasing as an individual. Always want to protect your assets!!

Best of luck. If you have any further questions, please do not hesitate.
0 votes Thank Flag Link Fri Jan 4, 2013
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