When I got an email about flipping houses with no money, they asked for a comment. I almost sent it back without reading it: “no way.” But then I read it.
“No way.” My comment remained. Or very unlikely, I might add.
The note starts by saying “if you think you can, you can. Thinking is 90% of the battle.” Give me a break. Does this sound like that some children’s book about the little engine that thought it could?
So then it goes on to say that you need to get money to flip houses. Duh. This is getting better all the time.
Then the blogger says he has not flipped a house with his own money for two years.
So he gets the money elsewhere (I am catching on the logic here, slowly, I admit). Where?
Private lenders or “ordinary people” with money who have IRAs, 401ks, mutual funds, home equity lines of credit or CDs.
So who are these people? Doctors and dentists. Lawyers and business owners, etc.
I don’t know about you but if I ask my doctor for a loan, he might tell me I don’t need a physical but a mental examination. Don’t even think about what a dentist might say: like pulling teeth comes to mind, however.
The blogger says you don’t ask them for money, however. Just tell them what you do and they will come to you. Ha, ha. Talk about wishful thinking.
But what about hard money lenders?
They are businesses who lend at higher interest rates. Maybe 18%. But don’t get scared, suggests the expert.
“The advantage is they close really quickly so you can wrap up good deals fast while your competitions (are) still stumbling around in the dark,” he writes.
“Partners” is the third option. The advice here is get a partner on a single deal. You do the flip. He or she provides the money. You then take 50 or even 40% of the profits.
Who would do this?
Well, of course, a friend, relative or co-workers, or how about a contractor or Realtor? Or maybe a real estate attorney or a “money guy,” though that person is not further defined.
The blog goes on to detail three “case studies” of such deals. “Actual flips we did in the past six months…with absolutely no money of my own.”
OK. You might be able to use these three sources to avoid any investment of your own. But the odds are not good.
In fact, getting any of these three sources is not as simple as asking them, of course. And the odds that you will be able to do this are, of course, very slim.
Chances that you will win a million dollar lottery are far better, to use just one example.
These types of articles literally make me sick.
But I will just make one more comment. From my own doctor, a hard-headed and pragmatic man who has a lot of common sense, never minces words, and offers only down-to-earth practical advice about taking care of yourself.
When he could not diagnose an illness I had, I suggested that a neighbor had something similar. And it was. I told him in detail. Could I have that?
He was not happy with my comment.
Next time you get sick, he told me acidly and without any bedside manner, make an appointment with your neighbor.