Aggressive Cash Flow Plan!
I have just began my investing career.
My 1st spec home is one the market and final work is expected to be done mid July for open house and walk thru's to begin. (the constr. loan is until Dec 18th 05)
I Closed on 1 rental (sfm) last Monday and have 3 more sfms (blt in 02, 03 and 04) pre-approved due to close this week or the latest next week (we are trying to catch the 1st 's rent but may not be able to.)
My aggressive plan is after buying these rentals this year, build and sell 3-5 spec homes the later part of 04 thru 05, pay down mortgages then refi them for lower payment to increase cash flow.
While the increased cash flow becomes my monthly income, cash out the equity and use some of the sales profit to invest in two or three 12-20 unit apt bldgs in Chicago by late 2005, to boost and stablilize my rental cash flow so I can start REI full time.
I have been researching RE professional to use to assist me in property search, financing, appraisals , attorney's and property management. I still have to locate a few notable contractors but have one in mind.
I am operating on limited cash resources and started with my VA garauntee to get the spec financed NMD, a residential 90ltv, cashed out dn pymt, closing cost from the property and seller concession for pre-paids NMD, the 3 pre-approvals are 90ltv cash out dnpymt and pre-paids for 3 more NMD deals.
Can any seasoned investors help me tweek this plan or analyze it from a viewpoint with greater experience?
Hi,
How were you able to get more than 1 loan approval at one time like that for 3 properties? Did you have alot of cash reserves?
Not questioning you, I just would like to know for my own benefit.
Thanks
Chris
There's this mortgage brokerage in North Ga, CFIC / Challenge Mortgage 678-781-5262 that had a Bank (BayRock) that would do 3-5 investor loans for me a t 90%ltv, actual deal came out to 2 being done through 1 lender and the 3rd was finance with an additional bank but was neg cash flow of about -$100 so I refused that financing and could do the other 2. They don't lend in every state though.
Can you actually find lots for $20K?
Does your builders quote include landscaping? Appliances?
$10K is a very tight margin on such a project.
Hi,
Are you getting financing? Because, putting up 100k to make 10k over 6 months is not a good returnin my book!
If you are getting financing, have the builder fill out the construction loan paperwork (IndyMac Bank is good) and then you will know if they are spot on or not. Also of course ask for referrals and past experience. The lender will require it.
As far as moving forward, try and do it all at once. First, you need plans, second you need financing and third you need to build.
Just take it slow.
Gil
I think lots can be had in palm coast , fl for 20K or so.
Yes Id be getting financing on 100K of the 120K total.
Do you think such a house that cost 120k to 130k to erect could be sold for 150k at completion. Would this be the norm or more just a rarity?