If my first 2-3 house rehabs go well, how can I use other people’s money to exponentially grow what I’m doing? I have enough for one house now, using a hard money lender. If that goes well, I will have enough for one more. I could probably do 4/year at most this way.
If I could attract $1,000,000 of investment money, I could do a lot more, assuming I could manage them all.
How should I structure the loans that I’m getting from the investors?
Currently, I take out 2 year loans at 12.9% plus the extra fees that go along with using hard money lenders.
Let’s say I offered to borrow money as 30/5 or even 30/1 loans.
If I can’t resell a house in one year, something’s wrong with me or the economy crashed.
I really need to join an economics forum so I can predict when the economy will crash. I’m smart enough to figure it out.
The question becomes: where do I find these lenders. Wasn’t I supposed to go to the courthouse and search records for “something” and filter out the major lending institutions and what’s left are my private lenders.
I know. But I’m trying to do this with no money down after the first one. If I can show some wealthy people that I can rehab successfully, maybe they’d give me 30/2 loans.
No investor is going to do a fully amortized loan for 2 years! If your flipping property your going to be lucky to get a 6 to 12 month interest only loan at 9% or 10% plus 3 to 5 points. Investors want their money back ASAP to reinvest.
A short term rehab loan will probable be 6 months with possible extension terms!