You might go for hard money for places under 50k that need rehab. Go to a local investor club and tell people you are looking for hard money lenders.
[addsig]
Many lenders require you to be in a property for a year. Does one of you homes have 35k in equity? Consider that between your job and rental income compared to what you owe makes you a www.risk.Even if you are paying on time your score may be low because your credit lines are pretty much used up.
[addsig]
Small loan amounts for purchase are hard to get but, if you try to get a construction loan together with a purchase loan it may work out better for you! If I can be of futher help please see my profile.
Good Luck,
Robert
Hard money lenders or people you know. Call some brokers and ask them if they ahve any hard money lenders. You typically pay a high interest and they loan 65-70 ARV but you can get repair money.
[addsig]
if you want to keep the property for the long term then hard money is out of the question. they typically charge 10- 15% interest and 2- 5 points up front. your best bet if you cant get a mortgage loan is to either get a personal loan or try to find private money (an investor who will carry the mortgage for a good percentage rate)
SO........if you have an opportunity to buy a couple cheap properties like this and have the funds to do it, would you purchase them and then take the equity out to leverage more properties? (So long as you still have the good cash flow that is...)
Try going to your local credit union sit down with them tell them what your trying to do most are at easier to work with then banks or mortgage companies.
Thanks for the quick and heplful responses everyone. I am certainly considering them all.
I will be moving there in the beginning of July and I will be starting school in September. On top of this I also need to find a part time job. Larry: you are exactly right about the people that teach the test....but I found on the Nevada site that UNLV is a Accredited Pre-License Education Provider....so do you think I would be able to experience the same level of education from the college rather then seek an outside source...(more money and time on top of a part time job and school...) ? Thanks again everyone
As far as passing your RE exam - there are many websites that offer study materials that are specific to the exam. Just do a search under Real Estate Exam Nevada.
This was realy helpful and useful information for a newbie like myself. I am currently trying to locate my first deal and will utilize some of the steps you mention. I am located in the MD area and the competition here is pretty heavy. I have been actively serching for about 1month,for a property that will give me a fair return for my investment .
I would like to know which exit strategies you utilize most often? This will help me plan more effectively for my first purchase / flip.
As a realtor I would say listing them on the MLS just for the exposure, however several here in the office have been sold by running an add (saving us the commission).
A lease option is an alternative exit strategy as is a land sales contract..
stockpro - How long have you followed this strategy and how has your success been? What is the average number of houses you bought/fixed/sold in a year and what is your avg profit per property? How many people are involved in your group?
Thanks.
I wish that I could say that I was wise enough to have implemented this in the beginning, instead I had some written down and some in my head (a sure recipe for failure
In the office we have over 20 properties in inventory, the rehabs are averaging 2OK each which I t hink is low but we need to do more on the top end of the market. In the last couple of months I have done one for 35K profit and one for almost 25K (a little better than the average) I have a lifetime high of 110K profit. I am currently working with friends and other investors that I have helped mentor and who have taught me as I transition from part time RE investor to full time after selling my construction company 2 months ago. In exchange for expertise in my fields they provide me with an office, infrastructure, support help (mortgage broker & appraisor), etc.
They have a lot of chaos due to the fact that they have no well written action plan, business plan, or goals. They are doing a lot but the returns are very sporadic as they are not tracking what works best for them. Since I have been here we have tracked the properties that are the most profitable consistantly and they are the rehabs with written plans..
[addsig]
stockpro - you said you are working with a team of investors/freinds. my question is are you splitting up the profits evenly between everyone, and if so doesnt that diminish the profits heavily. and on average how many deals do you do a month.
right now im trying to build my buisiness up, this seems to be the hardest thing for me. the deals are plentifull its just getting them funded and sold, and all the little stuff in between. what do you feel is a sufficient amount of cash flow needed in reserve to get up and running like you are.
im currently operating out of my bedroom/office lol, and have to source everything out. ex. in my area only realtors are allowed to use the local m.l.s. service so i have to bother them everytime i want comps, and if i need funding i have to personally guarantee a loan in some instances. it just all takes to much time away from finding and negotiating the deals. i need a much smoother operation.[ Edited by ZinOrganization on Date 02/09/2005 ]
Zin, get licensed as a realtor, the first commission will pay for itself and you will have mls access. Or, pay the $50 a month mls fee for an agent and have him list you as his assistant. Generally they will give you your own password and everything.
yeah i have been trying to get an i.d. for a while, alot of the realtors around here are uptight about it, and i dont have much interest in becoming one. i will figure some way to get it though.
yes, most of my deals i do try taking sub2 but some deals ex. rehabbs and shorts need to get cashed out. thats the other thing, my funds getting tyed up in one deal (rehabb) or another and then not having enough reserves to move on to more deals. i guess i will just keep building the cash flow up untill i can do various deals at a time.
thanks again.
[ Edited by ZinOrganization on Date 02/09/2005 ]
I have budgeted close to 5K for marketing this year, have spent clost to half that already. I have not tracked that on a per deal basis but at 20K min profit, over 10 deals that would be $500.
[addsig]
Quote:
On 2005-02-10 15:12, Stockpro99 wrote:
Hair Dressers know everything about everyone. I have had many many leads from just one hair dresser in my town over the last 5 years, at least 10.
What is the percentage you pay a hair dresser for leads?
You might go for hard money for places under 50k that need rehab. Go to a local investor club and tell people you are looking for hard money lenders.
[addsig]
Many lenders require you to be in a property for a year. Does one of you homes have 35k in equity? Consider that between your job and rental income compared to what you owe makes you a www.risk.Even if you are paying on time your score may be low because your credit lines are pretty much used up.
[addsig]
Small loan amounts for purchase are hard to get but, if you try to get a construction loan together with a purchase loan it may work out better for you! If I can be of futher help please see my profile.
Good Luck,
Robert
What is meant by hard money? Finding people that will loan me the money?
Hard money lenders or people you know. Call some brokers and ask them if they ahve any hard money lenders. You typically pay a high interest and they loan 65-70 ARV but you can get repair money.
[addsig]
if you want to keep the property for the long term then hard money is out of the question. they typically charge 10- 15% interest and 2- 5 points up front. your best bet if you cant get a mortgage loan is to either get a personal loan or try to find private money (an investor who will carry the mortgage for a good percentage rate)
SO........if you have an opportunity to buy a couple cheap properties like this and have the funds to do it, would you purchase them and then take the equity out to leverage more properties? (So long as you still have the good cash flow that is...)
Try going to your local credit union sit down with them tell them what your trying to do most are at easier to work with then banks or mortgage companies.
I would suggest going to http://red.state.nv.us
[addsig]
Thanks for the quick and heplful responses everyone. I am certainly considering them all.
I will be moving there in the beginning of July and I will be starting school in September. On top of this I also need to find a part time job. Larry: you are exactly right about the people that teach the test....but I found on the Nevada site that UNLV is a Accredited Pre-License Education Provider....so do you think I would be able to experience the same level of education from the college rather then seek an outside source...(more money and time on top of a part time job and school...) ? Thanks again everyone
As far as passing your RE exam - there are many websites that offer study materials that are specific to the exam. Just do a search under Real Estate Exam Nevada.
This was realy helpful and useful information for a newbie like myself. I am currently trying to locate my first deal and will utilize some of the steps you mention. I am located in the MD area and the competition here is pretty heavy. I have been actively serching for about 1month,for a property that will give me a fair return for my investment .
I would like to know which exit strategies you utilize most often? This will help me plan more effectively for my first purchase / flip.
As a realtor I would say listing them on the MLS just for the exposure, however several here in the office have been sold by running an add (saving us the commission).
A lease option is an alternative exit strategy as is a land sales contract..
Luck!
[addsig]
stockpro - How long have you followed this strategy and how has your success been? What is the average number of houses you bought/fixed/sold in a year and what is your avg profit per property? How many people are involved in your group?
Thanks.
I wish that I could say that I was wise enough to have implemented this in the beginning, instead I had some written down and some in my head (a sure recipe for failure
In the office we have over 20 properties in inventory, the rehabs are averaging 2OK each which I t hink is low but we need to do more on the top end of the market. In the last couple of months I have done one for 35K profit and one for almost 25K (a little better than the average) I have a lifetime high of 110K profit. I am currently working with friends and other investors that I have helped mentor and who have taught me as I transition from part time RE investor to full time after selling my construction company 2 months ago. In exchange for expertise in my fields they provide me with an office, infrastructure, support help (mortgage broker & appraisor), etc.
They have a lot of chaos due to the fact that they have no well written action plan, business plan, or goals. They are doing a lot but the returns are very sporadic as they are not tracking what works best for them. Since I have been here we have tracked the properties that are the most profitable consistantly and they are the rehabs with written plans..
[addsig]
stockpro - you said you are working with a team of investors/freinds. my question is are you splitting up the profits evenly between everyone, and if so doesnt that diminish the profits heavily. and on average how many deals do you do a month.
right now im trying to build my buisiness up, this seems to be the hardest thing for me. the deals are plentifull its just getting them funded and sold, and all the little stuff in between. what do you feel is a sufficient amount of cash flow needed in reserve to get up and running like you are.
im currently operating out of my bedroom/office lol, and have to source everything out. ex. in my area only realtors are allowed to use the local m.l.s. service so i have to bother them everytime i want comps, and if i need funding i have to personally guarantee a loan in some instances. it just all takes to much time away from finding and negotiating the deals. i need a much smoother operation.[ Edited by ZinOrganization on Date 02/09/2005 ]
Zin, get licensed as a realtor, the first commission will pay for itself and you will have mls access. Or, pay the $50 a month mls fee for an agent and have him list you as his assistant. Generally they will give you your own password and everything.
Randall
thank you for your insight, very helpful.
yeah i have been trying to get an i.d. for a while, alot of the realtors around here are uptight about it, and i dont have much interest in becoming one. i will figure some way to get it though.
yes, most of my deals i do try taking sub2 but some deals ex. rehabbs and shorts need to get cashed out. thats the other thing, my funds getting tyed up in one deal (rehabb) or another and then not having enough reserves to move on to more deals. i guess i will just keep building the cash flow up untill i can do various deals at a time.
thanks again.
[ Edited by ZinOrganization on Date 02/09/2005 ]
Hair Dressers know everything about everyone. I have had many many leads from just one hair dresser in my town over the last 5 years, at least 10.
I have budgeted close to 5K for marketing this year, have spent clost to half that already. I have not tracked that on a per deal basis but at 20K min profit, over 10 deals that would be $500.
[addsig]
Sorry if this is a stupid question.. where can I find fortune maker? Is it a software or a direct mail house?
Thanks
Quote:
On 2005-02-10 15:12, Stockpro99 wrote:
Hair Dressers know everything about everyone. I have had many many leads from just one hair dresser in my town over the last 5 years, at least 10.
What is the percentage you pay a hair dresser for leads?
Dinner and a movie
I generally would pay $200 if a lead was successful.
As a licensed realtor now I have to be a little more careful, lets just say that I pay a lot for a hair cut
request an e-mail list from the title companies for foreclosures, its free and just that easy.
Good Luck,
Robert