If your goal is to sell the property for a profit and you are buying it cheap you could get a “Hard Money” loan. This is an expensive loan, but you do not need to qualify and they do not care who does the work. Most cities and counties will offer some sort of beautification loans or grants, some offer purchase assistance or rehab money in the form of block grants call and ask for housing assistance or other similarly named department. If you are going to rent the property out. You should utilize the financing you spoke about. Get a low interest fixed loan. Bite the bullet and pay the contractor. Where is the house located? Someone on the site may know a good contractor.
Another idea would be to option the house, so you do not have any carrying costs, fix the house up then buy/finance it.
Another idea would be to Wholesale flip the property to an investor.
Knowing what you want to do with the property and why is fundamental to your best solution.
Post the numbers or run them yoursel
PROPERTY THAT IS IN BAD SHAPE - Posted by CHARLENE MOON
Posted by CHARLENE MOON on October 26, 1998 at 12:48:27:
HELLO,
I AM INTERESTED IN PURCHASING A PROPERTY THAT BELONGS TO A RELATIVE. THE HOUSE IS ABOUT 40 SOME YEARS OLD AND IT IS IN THE WORST SHAPE. THE PROPERTY HAS BEEN OFFERED TO ME AT A VERY HANSOME AMOUNT. I HAVE FOUND A FINANCIAL INSTITUTION WHO IS WILLING TO GIVE ME THE MONEY BUT I WILL HAVE TO PURCHASE THE PROPERTY UNDER TWO PHASES. FIRST, I WILL SETTLE WITH A MORTGAGE AND GO INTO THE CONSTRUCTION PERIOD @ 9.5%. THE PROBLEM THAT I AM HAVING IS THAT THIS PROPERTY IS LOCATED OUT OF STATE AND I NEED A LICENSE CONTRACTOR TO EITHER TO DO THE WORK AT A FAIRLY REASONABLE AMT. THE HOUSE IS ONLY ABOUT 500 SQ FT. I HAVE NOT BEEN ABLE TO FIND A CONTRACTOR THAT WILL BE WILLING TO CHARGE A REASONABLE AMOUNT. I WOULD LIKE TO KNOW IF THERE ARE ANY LENDERS THAT DO FIX ME UP LOANS.
Re: PROPERTY THAT IS IN BAD SHAPE - Posted by Eduardo (OR)
Posted by Eduardo (OR) on October 27, 1998 at 12:59:29:
Charlene–
If the house belongs to a relative, have the relative finance the construction, otherwise an out-of-state house in bad condition and you not being a contractor yourself makes this deal a risky non-bargain. --Eduardo