I’m new to the whole rehabbing process in general as you’ll be able to tell in a second. I was wondering if it would be possible for an experienced rehabber to post a walkthrough of what goes on when dealing with a rehab step by step. Some of the things I’m looking to shed a little light on here are how you go about getting financing, first of all, and second of all, how you go about getting an accurate appraisal. Obviously, you’d need to go into the situation of buying a rehab with all the numbers worked out in order for you to turn a profit to begin with, but how would a beginner who doesn’t want to use any of his money and has no experience in rehabbing properties (such as myself) get started?
Well first find the property or ballpark you want to get financing for,get preapproved whether it’s a HML or traditional lendinhg. (I can help you with that),… have the seller agree to a walk through with a contractor. Contractor will either charge a small fee or no fee depending…
Contractor will be able to tell the amnt of work needed. Depending on the purchase price, and the work needed and comps in the area you’ll be able to tell what profit can be made.(always plan on around spending $5K more than you actually need due to SURPRISES that almost always come up.)
If it’s worth it put it under contract, Make sure you put in the contract subject to appraisal and title and that you agree with the financing offered to you by the lender, and then have fun! You will want to move FAST because there’s a lot of investors looking for a good deal…
Don’t worry about the appraisal that will be required with both HML’s and traditional lenders before funding.
If you don’t have experience with repairs don’t waste your time and money, hire someone you can trust to do a good job, and who will work fast.
Regarding using no money of your own…that depends on your credit, most HML’s and traditional lenders will lend all the way down to a 500 FICo…how is your credit?(some HML’s will lend without credit)