Posted by Ralph VA on April 18, 1999 at 10:51:35:
There are several ways to do that. Here are two:
- You can look for owner fin. properties. Drive through neighborhood and find run-down houses that appear to be vacant. Track down the owner, do your research, make an offer: l/o; option; purch from owner and let the owner hold the mortgage. Your next step is to finance the construction. you can partner with a contracter, get a private lender, borrow from your credit card, use 4 or 5 signature loans ( Russ Whitney technique) , or got to a mortgage broker and find a lender who will do a “subject to home improvement” loan-they are out there.
- Find the property which you can buy significantly below appraised value and get your mortgage broker to find you a lender who will lend enogh $ to purchase it and do the repairs. Make sure the prepayment penaty is not excessive. Dont worry about the interest rate, you’ll only be in it a few months-Dont trip over pennies on the way to Dollars!
Those are just two ways you can finance rehabs. Really, no.2 is a variation of no. 1, but, along with the more advanced techniques that will surely follow in future postings, hopefully you’ll see something that you can make work.
Good Luck
Ralph C. from VA
PS I’m not the same 'Ralph" who got in the fight about Nationwide.