I am new to the real estate investment game and would like to know if anyone can give some advice on how to start quickly and correctly in rehabbing and flipping properties…
Due to less than perfect credit and limited funds I was thinking of going the hard money route to do my first deal with… Use the profits to do the needed credit repair and then proceed…
is this a good way to start???
also any suggestions on places to find good wholesale RE deals would be helpful also…
thanks…
Rich in Texas
Wow, while you were writing your post I was writing a reply to another post about HML’s! That reply was my attempt to explain how a hard money loan works out. As I said in that post, I’ve only been seriously looking at REI (seriously meaning about 10 hours a day) for the past two weeks, but after speaking with a few brokers, realtors and rehabbers I think I understand the drawbacks of HML when we’re just starting out. Like you I have very little cash to use and although my credit is pretty good it isn’t good enough to step up to the ‘Line of Credit’ route.
Take a look at what I wrote in “?loan to purchase unlivable home” in the Rehabbing, Landlording Forum, it might help.
Dave N
this information is helpful…
I have noticed the same thing regarding having to also factor in the cost of the loan in addition to the rehab costs and contract price. like you have said the numbers have to match up…