Vision..
Hello everyone...I recently sold my last rehab I did..tok me 6 months and 60k to finish the job...
Bought it for 300k, Sold it for 390k...Appraisal was 450k
Didnt make that much but it was good to get it off the books and stop making the payments...
My question is, Do you let your vision of what something COULD be control the rehab? Or do you do the minimal work just to get it done?
I am trying to build a good reputable name for the workmanship I do and to market myself better to eople in need to sell but dont want to sell to any random person, someone who would make it stand out...
I think sometimes when I rehab a home, I put too much of my own thoughts and feelings into it which in trun cuts into your net....
Thanks and happy new year
[ Edited by NguyenandCo on Date 01/04/2007 ]
Personally I am working the lower end on rehabs, and if I were to do whatever COULD be done I would put far more in than I could ever get out. Even in the high end home I am living in, there is a point where the cost cannot be justified by the return. There is no end to the time and money you can put into a house. So I do what I think makes economic sense- whatever will increase the value substantially more than the cost to me. I call that common sense. To hell with the visions of perfection.
Chris
Yes this loan would be perfect are you the contact person?
This deal is doable if there is profit in thepoject. The main thing that the hard money banks are looking for is " an exit strategy", a way of getting their money back in a timely matter. If you can show them that I can get a bank to get your deal done with my eyes closed, but you would need to show this first.
Merchants Mortgage may be able to help. I suggest a couple of things.
1. GO to your local REIA and ask around. Certainly there is a HM lender there that will have less hassle and be more accessable. We do HM in our area and I have never pulled credit..
2. Start asking around for people that would like to earn 12% on their money secured by real estate. We have rounded up investors, family, and friends for millions of dollars.
[addsig]
I tend to agree with Chris and would like the new poster to present some kind of verification that he finds 3-4 deals each week in Detroit. Anyone can find the deals. How many does he close that actually get funded????
[addsig]
to answer the wizards question, we mortgage some of the properties and have yet to have any trouble getting approved for detroit properties. We also use private money and little of our own cash, mostly for the rehab costs. Again the REI clubs are great sources for funds, even private money sometimes. There are at least 10 groups in the metro area. You should have no problem finding a mortgage broker who can assist you with your detroit properties. Your welcome to contact me and i can give you some contacts.
Chris, I wanted to know if that is the case here in Chicago? Also is that what is refferred to as a stated income loan? Thanks so much to to learn here.[ Edited by sherina1 on Date 01/08/2007 ]
I have no idea what the law is in Illinois; redlining is illegal in Michigan and I understand in some other areas too. You would have to look it up for your area.
A stated income loan falls between a full doc loan and a no income, no assets loan, with a rate somewhere between the two. Basically the bank takes your word on how much you are making without you having to prove it.
Yes, so much to learn- for me also. But there is no better place to do it than right here- and its free!
Good luck,
Chris