Trying to get started rehabbing. Finding the deals is not a problem, they’re falling into my lap. I’m an experienced Realtor, know this market well, and I have a detailed Deal Analyzer thanks to Fortune Builders, so I’m fairly confident what’s a deal & what is not. I have zero money though. I would need to borrow the purchase price + repairs/ hold/ staging/ MLS fees/ etc. Does anyone even do 100% deals based on the strength of the deal, or does everyone only lend about 60-70% of ARV? That would cover only my purchase price, and I’d be scrambling to finance $30K of repairs/closing costs/etc.
Would I be better off learning to buy through lease purchase and net out everything at the final sale? Is that how that’s done?
Any help is appreciated! Thank you so much!
LOL, I can tell by the fact that no one has replied to this or similar recent posts that this is probably a lost cause. When I figure out what to do I will post it here :biggrin
It is possible…but you would have to give up 50% of your profits. I work with a hard money lender that lends you the difference between the hard money and the costs of rehab and holding costs. But they take 50% of profits. Now if you can go out and find an investor/partner and pay that investor a 10-30% return on his money that would be even better. I say you go out and try to find an investor first. You still would be left with coming up with the $3K -$10K escrow deposit but that is the least of your worries. I flipped 4 properties last year all without a dime out of my pocket. 1 of them was with this 50/50% lender and the other 3 with a money partner.
KStar, if you have buyers in place this can be done easily. You may want to start off by flipping these wholesale properties to fix & flip buyers. If you have a vetted, qualified buyer in place you can do all the deals you want with NO $$ down.
Tell me where your located, I have a national buyer always looking for discounted properties. If yours meet their requirements then you'll have a cash buyer and I'll have a contact for wholesale properties and you'll be on your way. Shoot me a response and how to contact you if your interested, thanks & good luck.