New to REI, Need Help in Massachusetts!!

Looking to begin a new career in real estate investment and wondering if I should lock in private financing or use hard money lenders and avoid a mortgage lender?

Anyone, please help!

Yes you can. There is a list of hard money lenders here One thing to remember is that these are all bridge loans. You have to have an exit strategy. You need to be able to get a mortgage before you use hard money because you are going to have to get out of hard money into a mortgage in 2 years or less. If you are going to sell the property you need to have bought it cheap enough that even a cute cocker spaniel puppy can flip it and make money.

cute cocker spaniel puppy can flip it and make money

Do they have to be cute?

Thanks for the info. When I have a property is it smarter to line up a mortgage from a bank/broker before exploring hard money loans?

If your planning on keeping the property after you rehab it to rent it out than yes you should make sure you know what kind of financing you can obtain in order to pay off your short term high interest loan. Hard money is like a construction loan from a bank when developing. Only meant to fund the project at hand and therefore will require full payment once your work is complete. The lender makes money from your high interest only payments during the project.

Sometimes I write my responses like I am talking to people with the same experience that I have. You probably know this but others are reading this also. Let me tell you why I say the above. I say that because you will have to get out of that hard money loan quickly or your profit will be eaten up due to high holding costs. The property can’t languish on the market for months using hard money. It needs to sell in weeks not months. All property will get an offer in a week at the correct price. You have to buy the property cheap enough that after you have rehabbed it you can add your profit and put it on the market cheap enough that you get instant interest from a qualified buyer.

Welcome to the forum.

Thank you all for taking the time to share information and experiences. I’m really excited to get started and appreciate the help.

I am waiting for my local real estate group to meet again, but would anyone out there know of other investors in Massachusetts that are willing to talk with and possibly mentor a newb?

CG, narrow down your focus if you want to make things easy on yourself. What approach are you planning to take to get started?

As of right now I am educating myself, trying to network and build a team of realtors, HML, brokers, and a lawyer. I would like to start wholesaling but I am having trouble with the buyers list. As I gain experience I would like to flip something small and eventually get into owning rental properties run by a management team.

CG, take it a step at a time. You can educate yourself to the point of Paralysis of Analysis, if you’re not careful. Book smarts are fine, but street smarts make the money. You don’t need brokers, realtors or lawyers at this time. Especially if you are starting with wholesaling or lease options. Which is why I think they are the best approach for a beginner.

Thanks for the help. What other ways can you build a buyers list besides Craigslist? I’m trying to find other wholesalers around me but I’m not having much luck. The few people I’be spoken with don’t know what it is or do not recommend doing it.

With all the craziness in lending, I do not look for loans. I only buy when I can take over existing financing in place and take the property ‘subject to’ the loans. If the seller is motivated, he will agree. I’ve borrow millions on several hundreds of properties this way. Make sure your paperwork is tight!! If you need help, send contact number via email. Hope this helps.