A hard money lender might be a possibility for you. Try contacting a mortgage broker who deals with investors. Look in the paper for money to lend ads. Make sure they know what you will be doing (quick flip,etc.).
When you submit your offer you might want to include a polaroid of the nasty parts of the house to put in the bank’s mind that this thing is a dump and that they should be happy you will take it off their hands.
With your price estimates base it on a quick sales price below retail. Also figure in six months holding costs as well as realtor’s commission,advertising and anything else that comes to mind.
Posted by Sharonda(NY) on January 15, 2000 at 19:44:42:
I have a possible deal here but need a little help and/or advice. There is a home on my street that has been foreclosed upon by the bank. The realtor that the bank is using says the bank wants 39K for the house.(The foreclosure amount was approximately 43K). The prior owners left the house a complete disaster and the house requires about 10-15K in fix-up. Afetr fix-up the house should sell for around 59K (based on other sales in the area). I would like to offer the bank 15-20K for the house since it requires that amount of work and has sat on the market for 4 months and counting. I also happen to know a couple of contractors that will give me a good deal on the repairs. My probelm is this: I cannot qualify for a mortgage and I do not have any money of my own to invest. I have tried contacting my local REI club about becoming a memeber and doing this deal but have received no response. Where can I turn to do this deal? I am really just looking to make enough money on this first deal to pay off some debt, clean up my credit, and maybe have a little something left over to look at another deal. If the entire thing can be done for 30K and the house can sell for 59K, all I would want out of the net is about 10K and the other 19K could go to the investor of the original money. I have the means to make monthly payments on the invested money (amortized over 20-30 years at a rate no greater than 13%). I would be willing to take those terms and make payments for let’s say 24 months and have the original amount due at the end of those 24 months. This would allow me ample time to locate a qualified buyer or to refinance the property at that time to satisfy that amount. Really what I am trying to say is that I am open to virtually all options but would really like to get started in this arena. Is there any hope for me in this deal? If not I will accept that. Any advice or guidance that anyone could give me would be greatly appreciated. Thanking you in advance.
First, make your offer…until then we’re all just talking.
Once you have the property tied up…your possibilities are to look for a partner, look for hard money, OR
Just flip the property to another investor, put the cash in your pocket…and go do another deal. If you’re a new investor, a rehab is not the place to learn the tricks of the trade…especially one that requires significant rehab.