Need Some Advice?

Comments(5)

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  richmonte29th December, 2003

  I dont usually flip properties, I buy, hold, and rent them. I would talk to a mortgage broker and see if you can get other deals from other banks. Also you might want to talk to the seller of the house and work out some creative financing on the down payment.

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  telemon29th December, 2003

  What do you mean by substantial amount of money?
  
  I am primarily in rehabs, which turn into either rentals or flips and I always use cash to purchase and rehab the properties. I mean why get a mortgage with closing costs, etc if you don't need one?
  
  With my rentals I have a small local bank that will lend me 80% of the appraised value after rehab which normally gives me at least 20k in my pockett, my inital cash out, and 20% equity in the property. Oh yes, I have positive cash flow for the rental as well.
  
  It really depends on what you want to do, but I would not finance a flip, no need for those additional costs!
  
  Goodluck

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  pejames29th December, 2003

  Just remember, Banks and loan/mortgage brokers are not the only way to use other peoples money. There are also investors within the STL area that are just looking to make more on their money than the banks are giving. You just have to find them. Good luck
  
  
  
  Quote:
  On 2003-12-29 03:53, GoingFor7Figures wrote:
  Alright I feel I have everything in place but I'm wondering what to do next. I got a ficticious name, set up business account, got everything in place it seems. I have a substancial amount of money to invest. I've been studying alot.
  I've heard that I should use other peoples money instead of mine. I don't really no where the best place is to get a loan. There is so much to know that I feel I'm overloading my brain!!!!
  I'm very confident that I can be sucessful in REI. I ready to get something going on but I want to know what should be my next step? I talked to a loan officer at my bank and he said that on a 60k loan they would want 12k down and I don't remember the % on the loan. I figured I could find better than that. Where is the best place to go to get a loan if you are wanting to flip alot of properties in a short period.
  Thank alot your help is really appreciated!!!!! <IMG SRC="images/forum/smilies/icon_confused.gif"> <IMG SRC="images/forum/smilies/icon_confused.gif">
  
  <font size=-1>[ Edited by GoingFor7Figures on Date 12/29/2003 ]</font>

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  GoingFor7Figures29th December, 2003

  Thanks everyone for the help!!!!!!!

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  InActive_Account29th December, 2003

  The term "substantial amount of money" is a relative term. I recall when I was a boy, I went to a bank and asked for a "whole bunch of penny wrappers". The teller pulled out about 100----- I ment 5.
  
  My suggestion is that you do some deals. That's what's important. If you can handle it with your cash, then do so. Otherwise, get mortgage financing. You can always refinace later. At some point , your "substantial amount of money" will evaporate. At that time, you will have done enough transactions to seek other source of funding