Help With This
A wholesaler is selling a 4/2 house duplex in florida at 50% pus rehab $30000
Purchase price: $95,000
Estimated Repairs: $30,000
Holding and marketing costs: $5,000
Total Estimated Costs: $130,000
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Estimated Resale Price: $255,000
Estimated Net Profit: $125,00
My question if I buy this property using hard money (purchase + Rehab=$125000):
I do not want to borrow money against my house, I do not have money in the bank, I do not want to use my 401k money.
Where will I get my 6-9 months holding cost money ?
will a hardmoney lender provide the fund?
I have heard that a co. called perma glaze does that...google it...regards, CWal
Cover about 4 sqfeet with plastic and seal the sides with duct tape. Wait 24 hours. Then see if you have condensation. If you have condensation underneath the plastic, you have a bigger issue to deal with then putting flooring down.
You do not wan to have mold and mildew get a foot hold in your basement.
One thing, mildew grows when there is more than 40-50% humidity. So keep a dehumidifier running, and you should be good.
Monkfish offers good advice. (Sorry for your loss and this market is a b*tch)
We recently got a house under contract that we had listed May 1st. It was in a neighborhood that was generating overbids last fall and steady sales in March. At present there are 8 – 10 similar houses for sale.
The seller was ready to find the market so we aggressively started lowering the asking price. The price range was similar to the posters. Every Wednesday we lowered it $5,000. After four weeks we had three interested buyers and the seller accepted an offer. We also took the price off of our ads & roadside flyers. Added the words, “Price Slashed” and “Seller says bring all offers.” The successful buyer was a result of a flyer a friend picked up.
Jim[ Edited by jimandlacy on Date 11/03/2006 ]
Are you adverse to offering creative ways to purchase like seller financing or lease option? What about renting it out, are market rents high enough to at least break even on renting it?
What about an auction with a low starting price? The low price would bring people in by the busload, your newly rehabbed house if you did a good job will get them bidding. You can put signs all over town with baloons and whatnot saying for example:
"3br/2ba Colonial, hardwood floors and full bar. Starting bid $50,000. Preview starts at 1pm, auction starts at 3pm."[ Edited by Rich_in_CT on Date 12/19/2006 ]
You can always try a lease with option to buy. You can get quick $$ in your pocket and some cash flow.
Eric
Stockpro - How do you LO a property with $25,000 down? Who has that kind of cash for a down payment? My buyers have a hard time coming up with $500 for earnest money.
Build it into the lease payment.
If they can not afford to come up with extra cash then in all likelihood they will not be able to afford the house anyway.
What you do not want is renters......
regards
NC
I dont know what kind of Rehab that you have done but quite often when people rehab they do the big stuff but the little stuff they either do wrong or forget to do it at all. I would suggest visiting some of the homes currently on the market around your rehab to size up your competiion. Simply put make yours look nicer than theirs inside. Paint, carpet, trim, counters. Then visit some new built homes to see what is hot in your market and duplicate that in the cheapest way possible.
If you offer the best product at the best price it will go a long way.
I buy carpet that looks great for .44/ft and get installed for 3.25/yd. I paint walls earth tones with a white trim and used brushed nickel hardware throughout the home including door handles, hinges, lights, and cabinet handles. These little things can be added for very cheap and set your house apart far from your competition.
Eric Medemar
[addsig]
Scott,
The market in my area of the state has died. I have and just did a short contract (2 years) with a balloon. It works well if you really check them out. Remember Minnesota has very tight laws dealing with Contract for Deed. If the quit paying it is a foreclosure situation and could take you 60+ days to get the property back. You could look at lease option as well which is also very good but may conflict with local laws. May have to have rental certification and inspection.
J