Posted by Jay (TN) on January 24, 2002 at 09:05:44:
Chris, you’re going to need some cash to handle everyday and monthly expenses. There’s no way around this fact. If you’re dealing with flips, then you don’t need much capital to make deals. You can assign the contract. If you’re dealing with rehabs, then you’ll need funds to perform the repair work. If you’re using a credit card to pay for a down payment, where is your repair money?
So, where can you get cash…
private investors (partnership)
Hard Money lenders
Sell something to generate cash
Borrow from friends or family
Focus on creative deals with little cash out of pocket.
Note that I’m just making suggestions. All methods have their disadvantages and advantages, and I’m sure you can make the best judgment.
I think you should start with flips to generate income and gain experience. Then, once you’re standing on firm ground, you can start with rehabs, perhaps with a line of credit.
Posted by Chris Robinson on January 23, 2002 at 22:33:45:
Howdy Folks,
I am an unemployed IT Consultant, and I am looking to get into the RE market. I am currently looking into flips/rehabs in the western suburbs of Chicago. There are several opportunites in my area and I have all of the contacts that I will need to get the rehabbing done. However, since I was laid-off from my previous position in Sep. I do not currently have any income. Also, being a good brain-washed consumer, I have spent all of my earnings on material items throughout my life, so I do not have any savings to speak of.
Since I doubt that I will be able to get financing in the traditional manner, I am looking for some other sources of financing for my projects until I get my own nest egg saved up. My credit score is about 750 and my most recent salary was $80K. So, I am no slacker by any means, but without current income I feel that I may have to turn to a hard money lender.
Any help would be appreciated.
Sincerely,
Chris Robinson
When I got started full time I bought and rehabbed houses using a home equity line, a credit line using my cars as collaterol, and credit cards. It can be done you just have to get creative
Posted by Chris Robinson on January 23, 2002 at 23:13:50:
Thanks for the encouragement Paul, but unfortunately I only have about $20K worth of equity in my home and I am a co-owner with someone else.
Also, I still owe most of the price tag on my Jeep.
I could use credit cards for some money, but the average home around my area is between $130K-$200K. If I could get seller financing with just needing a downpayment, I could probably use my credit cards.