first deal need advice - Posted by Steve Richard

Posted by Bob-Tx on February 20, 1999 at 16:59:23:

Steve -
A couple of approaches for you to consider. If indeed your numbers are accurate you can opt to either buy this property and rehab it then sell it for full fmv. Or you can tie it up with an earnest money contract and flip it to someone else who will rehab it. If you intend the first course of action you need to line up a hard money lender - short term, high interest, equity based loan. They don’t care about your credit, they will lend probably up to 60% LTV and hold a first lien on the house. There are articles on this site to help guide you in that. You should be able to borrow $36k, close on the house, rehab it and have little or no money out of pocket.
If you elect to flip the deal it helps to have buyers lined up. Read Jackie’s articles on flipping in the “how to” section.
sounds like a hot deal, you need to get it tied up.
Keep us posted.
Bob

first deal need advice - Posted by Steve Richard

Posted by Steve Richard on February 20, 1999 at 09:06:05:

I am a newbie and i have a deal in the works right now.It goes like this: it is a sf next the my house that i already own.It is the worst house in the neighbrhood.Already negotiated price of 10k.A year ago i bought the house i live in for 27k,put about 30k into it and just appraised for 85k.my broker said the other house would only sell for 60-65k.house needs at least 30k work.was approved for rehab loan of 40k but they want 7500down total w/points,closing costs about 12k i only have 5k.Should i flip it for 20k
to another investor? I also am looking for potential partner to help with down payment.Or if some one could offer me a better loan.My credit is good but i lack capital.Any suggestions greatly appreciated.