- This topic has 6 replies, 3 voices, and was last updated 9 years ago by Anonymous.
- May 5, 2011 at 4:11 pm #205354AnonymousInactive
…selling them. what comes first? i know reasearch comes first but then what. is there programs out there to help people do something like this
- May 17, 2011 at 9:27 am #278985Augusta EoffMember
There are some programs, but they don’t really do much except convince you to buy their books, which also don’t help much.
Here’s what you need to do this:
Risk Capital (money you can afford to lose) sufficient to get control of property. You can’t flip until you either own or have the legal right to own, as in a contract to buy at a specific price, whether it’s Assignable or not.
Basic legal knowledge of Contracts: What makes a contract enforceable, how do I make it Assignable.
Good working knowledge of the Market: This is where a lot of risk lies. You need to know what the property will bring in a short period of time, and you need to know where and how to find your Buyer. This is THE major hurdle, and the one that the programs simply cannot give you, in part because each property is unique, and in part because it can change overnight. If you haven’t been heavily involved in real estate in your area, consider finding a partner for this who has been.
A firm grip on Reality: You will lose money on some deals. If you aren’t willing to recognize that what you thought was worth 100 is only worth 75 and cut your losses and move on, you’re going to get really hurt, because while you wait for it to be worth 100, you’re going to rack up costs that cause you to lose money at 100. This also can be a major hurdle.
- May 20, 2011 at 10:52 am #282552AnonymousInactive
You will probably learn more by actually DOING it. Find a house you can purchase at a good price. Have your work crew ready to do what you need to do (paint, repair, remove, haul off….).
The FIRST thing I would do would be to hire a structural inspector to do the inspection of the foundation and roof. If these need repairs, you are looking at
$8000 for a new roof and $10,000 to repair/lift/level the foundation. Do you have $18,000 to pay them? Also, termite
inspectors charge $1500 to spray and eliminate. Do you have this extra $1500 lieing around? Otherwise you will have to find a low price existing home that does not need any repairs if you want to make money. …………Why don’t you try building a
small new house and then try to sell it for a profit? With this, you are all set with no unexpected repairs the buyer will want you to pay.. Hope this helps
- June 7, 2011 at 6:29 am #431145AnonymousInactive
A regular loan would be less risky IF you have the income to support two mortgages, the one on the new house and the one on the new house.
A bridge loan might run out before your old house sells.
Once you sell your old house, you can put the cash from the equity into the new house, and have a shorter time left to pay on your mortgage, or you could put the cash into the new house and then refinance to have a smaller payment.
- June 7, 2011 at 6:29 am #431146AnonymousInactive
bridge loan will secure the house you want but will be pricey after awhile. if you get a new loan/mortgage you’ll get the house and will be able to use the money from the sale to help pay some of it off. make sure you get little or no prepayment penalties. your refinance will only be advantageous if your credit score is good. you will need some seasoning in order to get a refinance as most lenders will not loan you money right after you move in. some will but for a very high rate. either way, you’re taking out more money than you need to secure what you want. my advice, get a new mortgage, I assume you’ve paid or are close to paying off your old one?, and secure your new house since it is very important to you. once you sell the house, retain a good majority of the money, pay off the old mortgage is you haven’t already. if you rate and terms are good, then keep them for your new mortgage. if they’re bad, wait at least 6-8 months before refinancing.
- June 7, 2011 at 6:29 am #431147AnonymousInactive
Your best bet is to get a new loan for your new place and if your house doesn’t sell, either rent it out or put it under a lease purchase option. I would also refinance the old house (if it doesn’t sell) to pay as little as possible, such as a negative ARM loan.
If you’re in Southern California, contact me and we can go over your situation and see what is your best option.
Good Luck and don’t worry about your old house, it makes money regardless what you do.
- June 7, 2011 at 6:29 am #431148AnonymousInactive
Our friend Saternag hit it right on the nose. Great answer. He mentioned a Negative Amortization mortgage. Now, don’t get too worried about the name of the product. You could even call it deferred interest.
This would be the best type of loan for you at this point. Plus, even if your home did not end up selling, you could still rent it out and make a profit off the home.
The advantage to these types of loans is the fact that you pay a very low interest rate on them. Try…1.25%. There are options that stay fixed for 5 years, although the company that I work for is the only company that I know of that has these particular types of fixed payment option ARMS.
If you would like to know more about option ARMS/deferred interest mortgages, please feel free to contact me at [email protected] .com and I would be more than happy to offer some help and advice on these. Good luck!
- You must be logged in to reply to this topic.