Where do I get the money?

This is my first deal and I’m very excited but I am also scared.
I intend to fix and sell this house very soon. I have a house under contract for $45,000. My Realtor tells me that its ARV is $75,000. (She showed me houses of similar sq footage in the neighborhood that had sold for that amount and more. But it just seems too good to be true) The house needs minor cosmetic repairs that I estimated at $6,000 because I want to be very careful. I estimated that my other costs such as purchasing, sales, and holding should be under $5,000. (that is really just a guess so if I’m off please let me know). I have a few questions…

  1. Can I trust my Realtors ARV figure?
  2. If she is right, what is my next step in getting the money?

I have a 650 credit score and have recently graduated college and have no job. Based on these figures could I get a loan for the purchase price and the rehab work? I just don’t know what to do next, but I know the money is out there. Someone please help me…

Dave

HELLO: I JUST JOINED THIS CLUB TONITE. WHILE I WAS READING I HAPPEN TO SEE YOUR MESSAGE AND LET ME TELL YOU THAT ANYTHING IS POSSIBLE. YOU THINK THE DEAL IS TO GOOD TO BE TRUE,WELL I REALLY HAVE A GREAT EXPERIENCE ON A PROPERTY I PURCHASE 1 YEAR AGO FOR 47K…I PUT IT ON THE MARKET AND 1 WEEK LATER, IT SOLD FOR 83K…IT WAS MY VERY FIRST DEAL ALSO…AND GREAT EXPERIENCE. AVARAGE CLOSING COST TO AT LEAST 7,000.00. I GOT A MORTGAGE FOR IT AND MY CREDIT SCORE WAS BELOW 630,ALSO ONCE YOU REACH OVER 700 SCORE,THERE IS A PROGRAM THAT MORTGAGE COMP HAVE,AND THEY DO NOT CHECK CREDIT,WORK,ANYTHING,MAY WANT TO CHECK THAT,AS LONG AS YOU STAY POSITIVE AND WILLING TO DO IT,YOU WILL SUCCEED. WISH YOU LUCK. MC

what is the purchase price? What will the property appraise for? w/ a 650 score there are programs that you can qualify for. If you are under 70% Loan To Value you can get a hard money loan for the property and refinance into something more conventional with a little for rehabbing. It should be no problem.

Well…the great news is, YOU GOT THE HOUSE. Now let’s see the money! Do you have financing in place? How much do you have into the deal? Off the top of my head I would say at your scrore…95% (5% down), however now you have to find someone to lend under 50K. Well, its not so bad that they don’t. You could inflate the purchase price, wrap your closing costs, and repair costs into it. NO Out of pocket loan…WITHOUT the high interest.

Tara Callegari

I would consider just flipping the contract. If you intend to work it yourself, there are plenty of hard money lenders. However, I’d look towards starting small by flipping contracts and building some cash that way and as I’m doing that, learn and observe others.