I need some advice on setting a priority in my real estate plans from a financial standpoint. I would like to 1. rehab a house that I plan to offer 16K on that might need 10-15K of work to resell at 55K. 2. Buy 3 acres of land for 20K to either build my first house on or just to appreciate over time. 3. I have 22K in the bank which I 'debited 'from my credit card and I think I can pay back in the1-2 yrs interest free period with my present salary.
I have good credit. I’m not sure which task to undertake first and I’d like advice on a plan to finance the whole project.
I plan to use a handyman and not a licensed contractor for the rehab.
Hope someone can help me.
I would do the rehab project first as it will be the quickest project and will help build cash and experience and add to your good credit. A bank loan is the less expensive than hard money lenders. Can you get the seller to finance the purchase and then use your money for the rehab or even use other credit cards.
The land deal may also be owner financed usually with 10% down and with payments of $250 or so this should not be too big of a burden. I started that way with my 5.96 acre lot for $27,500 which is now worth for $150K with a 4000 foot house adding a little more to the value. I bought the land for $100 bucks down and $226 per month from the developer. You may want to read “We Had to Build This House” my success story here on the REIclub for some more on my experience.
Thank you so much Tedjr! I have your plan in point form on paper. I’ve been brainstorming for days but just didn’t think about asking the home seller to finance but that’s a great idea. Duh!Boy do I love this forum! Thanks again.
HVD