What If I Don't Have Any Cash?
Are there any ways to control a property long enough to sell it for a profit before any payments come due? Any thoughts would be greatly appreciated. Thanks.
Are there any ways to control a property long enough to sell it for a profit before any payments come due? Any thoughts would be greatly appreciated. Thanks.
You could always flip a property for a quick profit... Search this site for more info. You might also want to find properties for other investors, to get some quick money
Good luck
Get it under contract with a 30-45 day closing. In that time find a cash buyer. If you are doing a subject to, get the owner to make the next payment or borrow it from a family member or friend. Pay it back to them quickly and with a healthy return.
Put the property under contract or take it subject to, have sellers make next months, 2 months, or 3 months payments. If I buy the house i feb., the seller will be making the march payment and I'll be picking it up in april.....plenty of time to find a buyer.
Yeah, there are actually. There is lease/options, subject to, and wholesaling. L/O and Sub2 are methods of aquiring properties with very little or even no money down. Usually you find a tenant/buyer that gives you a nice down payment, pays the mortgage (and provide some monthly cashflow for you) and then after a couple of years refi's the house and gives you a nice back end profit.
If you don't want to hold on to any properties you could always try your hand at wholesaling. That is a method of finding run down houses that need to be rehabed, putting them under contract, and then assigning the contract for a fee (for as little as 1K to as much as 10K depending on the profit for the rehabber).
These are some great methods to buy and sell homes. They each have their own risk but offer some very good benefits. I would suggest you read this site a little more, particularly the Sub2, Lease/Option, and wholesaling forums to learn more about those techniques.
Call several local mortgage brokers and ask if they have investors/hard money lenders who work with rehabbers. Be upfront that you are new. Hard money lenders will charge anywhere from 15-18% interest and 5-10% points to loan the money and will usually only loan 50-65% of after repair value. This is a good way to start when you have no money. Flipping to other investors is also a good way to start. Join a local REI club where you can meet like minded ppl.
My suggestion if you have no money and wish to play in Real Estate, is do what is the norm in most business ventures.
You do a business plan and if you are talented you do some graphics to spark it up. Then you search among your relatives, friends or referels from friends for someone with a few dollars to invest. The high interest rate, the quick turn over and the ability to put the money to work not the person. You pitch him with your business plan you overwhelm him with the graphics. He committs a sum.
With that person in tow and on call you go out and set your deals and call him as needed. It takes a lot of the pressure out of your transactiions.
You utilize this person until you have accumulated capital and when this is accomplished you are off and running.
All by yourself needing no one. Not a bad situation.
Explaining Lucius
Thanks for all the great feed-back! One more question, though. What types of properties work best for flipping?
Cheep and "ugly" SFR, which are not located in the "war zone", would be a good place to start.