Where do I start - Posted by Tracy

Posted by Bob Eberle on April 23, 2006 at 20:51:15:

“But again, can you afford the rehab costs, payments on your borrowed money while you fix it and market it, and what if it doesn’t sell for 6 months?”

Dutch, you forgot the insurance on a VACANT building (go price that prior to making offers to buy property), utilities (huge if it’s the winter in a cold climate), permits, registrations, code violations yada yada yada.

If you’re going to put a property under contract know what your exit strategy is prior to buying not after. Those TV shows that are on showing Investors buying and flipping are very dangerous to your health and well being. That’s just my 2 cents but what do I know?

Where do I start - Posted by Tracy

Posted by Tracy on April 23, 2006 at 10:45:58:

I got a really good deal on a three Bd home for 16,000 I want to know where to go I have very little knowledge and it would be a real good rental property or a flip can someone point me in the right dirction on finding the funds and how to present to a bank

Re: Where do I start - Posted by Innovator

Posted by Innovator on April 23, 2006 at 23:21:24:

You doing the right thing to jump in and do something.

In regards to your “very little knowledge”, I suggest you search the archives under mentoring. You’ll find a wealth of knowledge for how to get started.

Re: Where do I start - Posted by dutch

Posted by dutch on April 23, 2006 at 12:16:31:

If it’s a flip, you don’t need funds. Regardless, get it under contract. then assign the contract to a rehabber for a fee, or THEN start searching for the money. If it’s that good of a deal, the money will find you if you get the word out.

My advice, if you don’t have any money, DON’T BUY RENTALS. You can go broke owning rental property if you don’t have cash reserves. Think: ok, what happens if the tenant moves out after 1-2 months and totally destroys the place requiring 5-10k rehab and 3-6 months to complete and rerent. Can you afford the rehab AND the 6 months with no rental income AND make the payments on your note while all this is happening?

If you can buy it and rehab it, then sell it open market retail for a hefty profit, do so. But again, can you afford the rehab costs, payments on your borrowed money while you fix it and market it, and what if it doesn’t sell for 6 months?

That’s why my advice to newbies is to start out flipping (wholesaling) properties while they learn the market and the business. Get Bronchick’s course on flipping, here or at legalwiz.com

Dutch
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