I’m a newbie at this, so bear with me.
I want to know that I’ll qualify for ‘hard money’, but do I approach a bank that offers hard-money before I have a property picked out?
If I pick out a house to buy first, do I get a sale contract in place and THEN go scrambling for some hard-money… or is it possible to go out hunting for a property KNOWING I’ve got a bank lined up??
I’m looking mostly to buy from sellers in foreclosure or the “fixer-upper” that is depreciated on mostly looks, neglect. I don’t really plan on holding the house more than the three months needed for repairs. Is this a sound enough approach?
Hi. I have been reading the book “buy it, fix it, sell it, profit” it is on the recomended reading list for this site. It discusses in detail how you should go about your plans, it is a great source for information on fixer-uppers and private money lenders. In the book the author mentions making a business plan to present to a lender and getting a pre-approval of sorts, then you know you can go out and look at properties with the confidence that you can make an offer. I suggest you get the book and read it all for yourself though. Hope this helps.
No…the most important thing is to make sure you have the financing lined up first…that way there are no surprises like you losing escrow money at closing because you couldnt close. I work with CFIC…we are a direct lender, and I do some investing myself. I can help get you prequalified before you begin to shop.