Posted by LeonNC on March 13, 2001 at 24:27:25:
I’m having a little problem understanding something. Specifically how to buy properties, do the needed repairs, and recoup the money.
It seems like most of the lower end properties need some type of repairs. It may only be 5-10k but most need some type of repairs to get into shape to rent to own.
And, if the property needs extensive repairs then the only way I can see to recoup the money used to do the repairs, and pay for holding expenses is to refi the property when finished.
I’m not sure if I’m clear or not as to what I’m asking so I’ll try to be more specific in what I’m looking for. I only have so much cash. Most people say don’t use your cash. I know the various ways to buy the properties but it’s the repairs that have me stumped. It seems in my situation that the only way I can buy these houses is to pay cash for the repairs and put a (dreaded) bank loan on the house.
At this point I don’t mind putting a bank loan on property. But, what if the house only needs minor repairs. I do them. Will the bank still give me an 80% loan based on the value of the property regardless of what I paid.
Too many questions but I’m trying to put the pieces together to enable me to make more offers. I’m really wondering if I should be doing pretty houses…no repairs.
May all your stocks be somewhere other than a tech fund.