Very Little Money To Start With
ok.... heres the deal. I have found a few houses in my area that I am interested in. I want to put an offer in on 2 houses. they are junkers that I want to flip/wholesale.
The thing is that I have only 75 bucks to my name and I need to put down a deposit on at least one of these. where do I get the money or is there a way around that. Any tips would be nice. thanks!
If you have any credit cards, use the credit limit to take out a cash advance, but make sure you pay your credit cards first once you sell the properties.
How did you find the houses? This determines how much you need. iF they are FSBOs and you are dealing with the seller directly you can use a deposit as low as 10.00. If you are dealing with a realtor than it may be slightly more(100.00 in most cases). In this case you may want to take the advice of the previous post.
Good Luck
There is ALWAYS a way!
<IMG SRC="images/forum/smilies/icon_biggrin.gif"> [ Edited by results_one on Date 01/10/2004 ]
well it really depends on what you plan to do with these houses, you said you want to wholesale/flip them. so are these rehabs??? if they are, maybe you can get them under contract and them simply assign them over to a rehaber for a few thousand.
if you plan to rehab them yourself, i would say NOOOO! rehabs are a no no for a newbie investor unless you've worked in that line of work previously. if they are FSBO's then negotiate price and terms with them and make an offer. once your offer is accepted, get the house under contract and then assign it away. (of course dont forget to do your due diligence and an accurate estimate of what it'll cost to rehab the place. that will help you negotiate the price in terms of what you need to put in it to fix it up. the lower you can negotiate the price or the better the terms, the more money you can make on your assignment)
jus my nickel.
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What is a FSBO? and where do you find these houses?
For Sale By Owner. You need to do some more research and get some more ed-u-ma-cation before buying a house. Thus question is so basic
Good LUCK and Thank You
Hope this helps some
Ted Jr
[ Edited by kjack871 on Date 01/13/2004 ]
Have a realtor write the offer. Give the realtor a check to cover both for $500.00.
Tell the realtor to hold the check until an
offer is accepted. At that point, borrow the money from someone, maybe even
the realtor! They probably wont mind since they are getting a commission!
Be careful about passing rubber checks..I heard people go to jail for that! Not a good idea to do that. I would borrow the money from someone, or find a way to creatively structure the deals. Not knowing how you are trying to aquire them, or how you are planning to move them, it is hard to give much advice.
>>if you plan to rehab them yourself, i would say NOOOO! rehabs are a no no for a newbie investor unless you've worked in that line of work previously.
Why do u say that? I was thinking about getting into rehabbing, where I will buy properties and hire someone to rehab. What are the pitfalls and warning signs?
Thanks.
Quote:
On 2004-01-13 09:47, ahmedmu wrote:
>>if you plan to rehab them yourself, i would say NOOOO! rehabs are a no no for a newbie investor unless you've worked in that line of work previously.
Why do u say that? I was thinking about getting into rehabbing, where I will buy properties and hire someone to rehab. What are the pitfalls and warning signs?
Thanks.
Newbies usually underestimate the time and money required to do a proper rehab and remarket of a property. You must have the resources (money and cashflow) to do it without losing your tail.
As to the original poster, I am going to assume that $75.00 being all you have in the world means you don't have access to credit cards. If that's tru you need to read my article on beginnig a real estate career. You can go to my TCI and read all of my articles. In a nutshell, you need to look not for a property, but a motivated seller. There you can find the financing, which is going to most likely be seller financing. It is not that difficult, just realize that you are not going to, unless you are extremely lucky or skilled in negotiating, get the best deal, but if it cashflows properly, who cares.
good Luck,
Shawn(OH)
Good Luck,
Shawn(OH)
ahabion
Quote:
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"...maybe you can get them under contract and them simply
assign them over to a rehaber for a few thousand."
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Do you use one or two contracts and what kind of contract do you use to put the house under contract and assign the purchase right to investor buyer?
Would you please PM to me?
If you are thinking of rehabbing your first deal, i would say YESSSS! You dont need to know how to fix everything, all you need to know is some good contractors. Get their estimates in writing, then write up a contract for them stating the cost and duration of the project. Include penalties if the work is not finished on time. If you get a hard money loan, repair costs are included in the loan, and can be drawn when you need it. Will it be smooth sailing the whole way? probably not, but the same can be said for any deal. I know you have very little money, so may I suggest saving as much as you can for a while, and partner with someone on your first deal. If you do wholesale, chances are you will meet many good rehabbers/contractors in the process. Good luck to you.
Sweet~ The newbie above is getting great advice!!
I'm considered a newbie too by the post I've made...need to add more
I love to use Option to Purchase Real Property..contracts that my father a lawyer revisies for me! I only use a 10.00 option fee to control the deal and assign it to someone on my buyers list!!
On the contract, you can leave yourself room to find a buyer...say 7-14-30....days to assign the contract.....and all for 10.00 bucks
If you really feel and know it's a great deal(did your homework)..and want the seller to except your offer...use a 100.00 Option fee!!
Make it happen!!
[[ Edited by seaninseattle on Date 01/14/2004 ]
You can work at McDonalds tomorrow and double your working capital!
rofl
Did you know that the founder of McD's was in the real estate business and NOT the hamburger business?
and for me saying NO to rehabs for newbies is simply what someone else said in the above posts. Dont know enough yet to really get all the expenses and such down. Sure you can get quotes from contractors and stuff but what if they do a "shotty" job and overprice their services and expenses but you cant see it physically yourself? jus a thought and hypothetical. if you want to pursue rehab then by all means, the world needs rehabbers and thank the good Lord there are, but personally IMO (in my opinion), rehabs are not for newbies.
Usually a more trained investor would be able to look at the property and assess how much it'll take to fix it up and stuff and how much it'll market for before he asks for a train pro to come in and give him a quote. compare the two and make an offer.
but hey what do i know, i'm not a rehabber, i'm an investor who invests in nice houses in nice areas and i prefer to work that way.
tho from my understanding rehabs can make you a ton of money or can leave you a ton of bricks if you dont know what to expect.
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carpediemi24
On your "Option to Purchase Real Property" form you have a clause that allows you to assign the contract? So, how do you do when you want to resell the property to a retail buyer without paying for the property first? How do you make sure that your buyer don't buy the property and pays you nothing?
I whole heartedly agree that you should flip these properties. If you have no money to your name, then this would be the quickest way to get some.
Follow the information in the forum for flipping a property, and get some cash.
Good luck
Quote:
Did you know that the founder of McD's was in the real estate business and NOT the hamburger business?
Which brings us to the point that Rich Dad Poor Dad is an excellent read.
You could always sign and option while you are looking for a buyer. Or you could try to get approved for a loan. I am always amazed when people call me to buy investment property and don't have a preapproval letter or the cash to buy the house. I wonder why real estate agents like to waste their time. I always tell people to apply for unsecured lines of credit , I know of three that are available in limited areas. At least they will have something to work with. The next thing would be to take out an equity line on their own property. But then again if you are working on that slim of a margin you might be better off waiting until you get all your ducks in a row!!!!!!!
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WHAT?!?!?!?! Hey Newbie - don't you DARE be afraid to rehab on your own!!!! I'm a 26 year old FEMALE and rehabbed my first, second, third, and fourth property, all without ANY EXPERIENCE. You can do ANYTHING you want to, especially with help from the Internet and books from the library. GO FOR IT!!!!!!
What do you feel would be the best way to get started??
You got some really good ideas from the posts above. You may want to find a partner that you would compliment each other. I have done that on several deals just because I wanted to try something new. Try to find a rehabber that needs someone like you, I got tired of people giving me high bids on work so I became partnrers with someone that did the work, we both get paid at the end.
You might be able to find someone that could benefit from your research. Information is a vaulable commodity
Lori
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