Recently a new car flipper asked: “Jeremy, I only have $700 in cash saved. Is that enough for my first flip or should I go borrow more?”
I gave a full answer in Episode 2 of the 3 Hour Car Flip Podcast, but here’s the quick version of my stance on borrowing money to flip cars: DON’T DO IT.
I always recommend that you have a specific amount of money set aside for car flipping – money that you can afford to lose. $700 is enough to purchase your first flip. There’s no need to go out and borrow more. I only had $850 for my first flip and it was enough to buy a car that I made a little money on.
Borrowing money to flip only increases your risk as well as adds stress to the flip process. Starting slow is nothing to be ashamed of! As a matter of fact you’ll probably make better decisions and keep the cost of your mistakes low.