Hello!!
I am interested in getting into rehabbing, rentals maybe flip, I work full time but have a res contractor’s license with plenty of experience, but am real ignorant to the money part, which would seem to be the most important part? Do most people use hard money, banks etc… to get the money for buying houses? I have some cash and good credit but the only thing my uncle taught me was use someone else’s money!
Thanks,
With good credit you can put 10-20 percent of your own money down and get the rest financed. You need to start checking with some lenders and they will walk you through the process You also want to start learning the formulas for determining whether or not a property will provide a return for you so that you purchase the right peice of property.
Also you need to obtain knowledge about the different real estate locations in your area. Are the properties appreciating remaining stable or are they depreciating. You can make money in any of these situations but you need to know what is happening in order to make a good decision on your first purchase. An experienced real estate person can help you in this area.
Basically you will be putting together a team that will help provide information, experience and knowledge in making your business asuccess.
Good luck to you!
spacecoast-
Sorry I rambled on a bit…You would use a bank or mortgage broker to purchase the property. People use hard money lenders usualy to obtain money when they require additional funds to complete repairs for a flip.
Thanks for the reply I really need to do some reading!
Spacecoast,
Your financing options should depend on what you plan to do with the property. For example, if you are going to flip the property very quickly (1 month or so) then a HML might work out best simply because of timing and ease. However, if you plan on purchasing a property for rental - you would want to use traditional financing. If you have good credit as you say - there are many loan programs available to you to finance a Non-Owner Occupied property. Let me know if you have any other questions.
Dan,
Thank you for the reply and information!
Thanks again,