I only paid $50 for the car, cleaned it, and then sold it for big bucks………If that’s what you are expecting, then you’re in the wrong place.
So, how much money does it take to begin flipping cars for profit?
I recommend that you allocate $2000 for your first flip.
The days of finding decent cars for $500 are long gone. Unless you are buying cars to repair or rebuild, stay away from this price range.
The $2000 benchmark serves three purposes.
First, If you are new to flipping cars, you will not necessarily know what are and aren’t a “good deals”. I have found it is easier to gauge what constitutes a good deal when using a predetermined price point. Deciding the better deal between vehicles in the same price range generally makes the better deal more apparent.
Second, $2000 is a good starting point because it is an easily attainable amount. If you cannot come up with at least $2000 cash, you need to wait to begin looking for your first deal.
Third, as with most things that require a learning curve, it is wise to start small. Just as you wouldn’t try to bench press 300 lb. if you’ve never lifted weights, you shouldn’t bet the farm on your first car flip. Start small, and build from there.
Just because you are looking for a $2000 car doesn’t mean you only look for cars where the sellers are asking $2000 or less. The goal is to get a deal. Buying a car that is worth $2000 for $2000 isn’t a deal. You want to buy a $3500 car for $2000.
You must keep in mind the cost of repairs when allotting your $2000. You don’t want to spend your entire $2000 budget on a car that needs $1000 worth of work. If you are on a tight budget, a car that needs repair that you can’t afford makes a lousy yard ornament.
Start small. Buy smart. Grow your profits.
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