Simply, Half a double for 30k half doubles in area go for about 50-65k but it also will require about 6-8k of work. All work I can do myself.
With closing cost’s, and a hard money lenders % i’ll have to pay back Is this a good first time rehab investment?
At a resell value of $50,000 your deal is OK to buy and hold for a good rental but would not make a good flip deal because of the carrying costs and resell commissions and other closing costs. Most rehab investors want the hard costs including 4 months carry costs to be 70% of the ARV (after repair value). At a value of $55,000 you may have a good deal. Do not try to force the numbers by raising the ARV or lowering the repair costs. Your hard money lender will raise the repair costs and lower the ARV and you will waste your time and possibly your earnest money.
[b]Being new at this what am I looking for for flips? Also how do I rent? You talked about rental property… Also I just heard from an investor in California that when your new and have bad credit most all private money lenders or hard money lenders will want you to put 20-30% of your own money down to rehab or flip a home. Is that really true? I have a low credit score a little bit of money put away and thought that the homes I look into or assets are what hard money lenders look at not my credit or how much I have to put in…
Grrr I’m getting so many diffrent openions on rehabbing homes I get ready to tell people “I’ll buy it” and then I hear something that gets me frightened again, am I just wasting my time? Are lenders going to have my back with no money and bad credit?[/b]
Yes you will get all sorts of different responses from private and hard money lenders. I first talked to one that wanted to buy the deal and give me a birddog fee. Another would loan 505 LTV and nothing for repairs. Another wanted 20% down with 600 credit score. I told them it was a hard money loan and if I had that good credit and that much money I would go to Bank One and get the funds. I did talk to some that were a lot better and we worked together and got something I could work with. The lower the LTV the better deal you can make as far as money out of pocket. Mine was more interested in previous construction experience and deals I had done than credit scores or even out of pocket cash. I was even allowed to borrow the out of pocket cash as long as it was not part of the closing. It took me a while to do my first deal even with my vast previous experience. I was scarred too and even lost earnest money on a few deals because the HML did not approve the deal. It takes mucho guts and determination to keep on trying especially after several failures and especially on the same property as I did but at least it was at a lower price which made it work for another HML. Again the better the deal the better chance of success. You may also want to use a mentor or partner to help with other shortcomings you may have.
Great advice, its been hard finding a partner or anyone with the time to mentor me. I have a few really great deals but don’t know who can help in my area also what is bird dog? I’m great at finding deals does it just mean i tell them about the deal and they pay me for it?
[b]I just hope I can get a lender that dosn’t care about credit or any of my own money. Then I would be fine… I could rehab/flip with no worries.
You woulden’t happen to know of any Lenders that will let you hold a property for 12-24 months do you? I have a great property that if sat on for that long could earn some major profit. Everyone I run into lender wise only does 6 month intervals.[/b]