This topic contains 8 replies, has 1 voice, and was last updated by Anonymous 8 years, 9 months ago.
- February 11, 2011 at 5:02 am #411758
it’s upto u & market value of shares
- February 11, 2011 at 5:46 am #411759
Go with a mortgage broker on this one. In situations like this, and you’ll appreciate this when you have 10 or so properties, a broker will make the headache of the process a whole lot smaller. Make sure they have conforming lenders. The type of property you want to look for is a bank forclosure, or a HUD/VA owned property. You can find those at http://www.homesales.gov. Good luck, and good hunting.
- February 11, 2011 at 6:03 am #411760
The more you finance, the harder it will be to get positive cash flow from a place.
Also, rehab always takes longer, and costs more to do than you expected.
If you can work with a company that does this for 6-12 mos you will get a better feel for the place…..
Start with the biggest down payment, or the cheapest place that you can feasible rent out.
If the place looks bad on the outside, you will have difficulty getting a mortgage….if you have family you can get cash with, that is probably the best way to start.
- February 11, 2011 at 6:56 am #411761
First off, I am by no means an expert on financing options. I only have my personal experiance. I started in real estate with $ 2000, so I had my fair share of problems getting started.
Since you are rehabbing, I would recommend either of two loans:
Construction Loan: If you have to do major overhaul to the property, you can get a construction loan. They keep track of how much you spend, and make sure you are on schedual, and then use the finished house as collateral.
HELOC: A home equity line of credit uses the equity in the house to fund your project, but you don’t have to use it all at the same time, and you only pay interest on what you’ve used. You’ll still have to buy the house though.
I could not find any company to loan my LLC money until it was 2 years old. I’m not saying they aren’t out there, I just couldn’t find them. That means you’ll have to personally guarentee everything for the first couple years.
I bought my first 3 properties on land contracts, and then refinanced them later. This method means the owner keeps his current mortgage, and you pay him for it, and a little more for his trouble for a year or more until you can refinance it. It allows you to bring a payment history to the bank, making it easier to get the loan.
Make sure you estimate everything you are going to need! I can’t stress enough how over-budget you are going to go, so plan for it. Find inexpensive dealers of materials: There are often wholesalers and clearance dealers listed on the internet.
- February 11, 2011 at 7:36 am #411762
Contact a local Realtor who specializes in this type of practice.
- February 11, 2011 at 7:49 am #411763
A good place to find free info and advice on buying investment properties is
- February 11, 2011 at 8:01 am #411764
Get a real estate investor mentor. Everyone here has told you to go get a loan and assume liability. That would be one of your biggest mistakes. The last thing I think you want is for a big ol foreclosure scar on YOUR credit report from one of your investment properties because you did things the lazy way.
Rule number 1. Never Assume Liability.
I recommend contacting Chris Harris from
He is one of the best mentors out there and can show you how to get properties with No Banks, No Credit, No Money Down and you Won’t Be Assuming Liability.
Only lazy people use their own money/credit.
The more you know…the fatter the paychecks.
- February 11, 2011 at 8:18 am #411765
Not the place to drum up business. Go out and do it like the rest of us.
- April 16, 2011 at 1:58 am #198900
I’m getting a mortgage loan through a mortgage company but the guy that is giving me the loan seems a little bit to excited. How much money is he making off of the loan of 170,000 and what should I look out for?
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