I am very much interested in RE investing. I purchased my first investment property May, 2006 at auction. Had to do cosmetic repairs only. It’s on the market with a potential 25k profit, and closing in on my second deal real soon. I’m trying not to rely on my savings for my investing, therefore will be trying to pull out some equity of the first, to finance the second & third. Working on the LLC and will be setup next week, so I can use the business lines to finance the deals. Am I going the right route for now ???
Are you rehabbing the property and flipping it? OPM
The 1st property that I own free and clear after auction, yes…that’s the plan to flip. I had to do interior painting and new carpets, etc. I have a realtor working the property for now, may lease w/option or rent. Meanwhile, I want to pull some equity out of the property to finance my second and third deals, hoping I will not have to go into my savings.
Yes, you can pull money out. Put a portion into an investment and the other portion, just keep in savings. As far as the 2nd property you should be using OPM other people money for leverage, A rehab lender if you have a good score fico score of at least 600 to 620. Read by byline.
Sorry it took so long to get back to you J…1st property is still on the market, will probably rent it and hang on to it for now. I’ve been to a mortgage broker, and she hasn’t returned my phone call…not yet anyway? My credit has some issues on it and my credit score is hovering arorund 618 (Transunion). Still trying not to go into my cash reserves to finance my deals. I have two properties I picked up from auction and I will need the cash soon to close. This will be my 2nd and 3rd RE investments this year so, I’m still a newbie and really eager to learn and make some good solid contacts through networking. Any suggestions that you may have will be greatly appreciated !!