I Want Some Adivice PLEASE
I have a crew and we do rehabs...i was given some advice on this forum to buy my own homes and do as many rehabs as i wanted to. That's sounds like a fantastic idea, but i am new to this game as far as being an investor. My credit is not so great and i don't have enough money to do it on my own so what do i do. hard money lender? but how does that work, I checked into one and it said you only had 180 days to do the rehab and sell the house, then how much do they get at on top of the 9% on the loan? Basicly i need some advice from some vet's
Most of the time you are going to find that it takes more than 180 days to rehab and sell. (depending on how you price) I would try to stay away from hard money. SO here is my advice...
Since you are just getting started.
Start off with a foreclosure/distressed property (dont pay over 70% of the homes fair market value). Make an offer and have your seller contribute 3% to your closing costs. (get your real estate license and make an extra 3% on top of that) Go to a reputable mortgage broker and fill out a mortgage application, try to get 100% financing. LIVE in the house while you are doing the renovation. If you need additional capital to do the renovation there are several banks out there that offer Home Equity Lines of Credit with NO SEASONING>(your mortgage broker will understand) Close on one of those. FInish the rehab, then sell the home. If you did your homework, you should have some seed money for your next project.....
Hope this helps