how do I get started?-the ultimate ?

Comments(7)

• 
  tanya121512th May, 2003

  Mick,
  
  You don't necessarily have to bring money to the closing table if you are flipping. If you are doing an assignment of contract, then you collect an assignment fee either prior to assigning the contract or at closing. All you do is get a home under contract for say 30% below market value, then find an investor or buyer to assign the contract to for say 20% below market value. You collect 10% of the purchase price as your assignment fee. You should do some more research on this topic.
  
  Also, you can find rehab properties in which you can have all the costs paid for by the lender at closing and get cash back at closing for the repairs. I have a mortgage broker who works with investors and know exactly what we need done. So he sets up everything so that I pay ZERO at closing, plus get cash back to do the minor repairs. You just have to find the right people or know how to acquire a property with no money down. There are ways of doing it...
  
  Tanya[ Edited by tanya1215 on Date 05/12/2003 ]

• 
  mitchigoo12th May, 2003

  Tanya,
  Can you go into more detail on how to do the rehab loans through a mortgage broker? Or email me and give me some direction on those please?

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  GaryM12th May, 2003

  Tanya,
  Please elaborate !! I'm in the same boat, don't have any cash to get started.How do you propose this to a lender? Don't you have to give the seller an earnest deposit to make the contract legal? Also when you get lender financing doesn't all the work have to be done by licensed contractors?What about initial appraisel? Closing costs?Seems to me you have to have a fair amount of cash to get started.If this is wrong please enlighten us!! I know there are a bunch of us that really would apreciate the knowledge,Thanks in advance

• 
  tanya121513th May, 2003

  If you have a good mortgage broker, then they can find you any loan you need. But, to have the lender give you cash back to do the repairs, you need to create a proposal that outlines everything. You should get estimates of repairs needed, to include in your financing proposal. You also need a closing agent that will help you with what you are trying to accomplish. Luckily, I found a mortgage broker that set everything up for me from the lender to the closing agent.
  
  Here is the one I'm working on now:
  FMV = $95K - $100K
  Purchase Price = $70K
  Cash to Seller for Equity = $2,500
  Repairs = $5K
  
  My mortgage broker is obtaining a conventional loan that will cover the closing costs, cash to seller, and cash in my pocket. He works with investors, so he already has closing agents who will do what I need.
  
  If you cannot find a good mortgage broker, then you should create a proposal that will help you obtain financing. If you find a home worth $100K and get it under contract for $70K, then get a loan for 90% of the appraised price and have a closing agent working on your side.
  
  Tanya[ Edited by tanya1215 on Date 05/13/2003 ]

• 
  way_motivated13th May, 2003

  HOW I GOT STARTED - THE ULTIMATE ANSWER
  
  what i did was save up some $$$ until i could get a course (mostly for the forms), next i began to market for motivated sellers using bandit signs, mailings, biz cards, calling people, going door-to-door, once i found a good deal i would call around to find some investors who would be interested, then i tell them about the seller and i collect my birddog fee (usually $500) per deal, the money i get goes right back into my maretking, by the end of this week i would have (hopefully) birddogged 3 deals, i'd be fine with 1 or 2 (the third one is a reach)...now i have a good couple of investors i work with and it took time to find them, had to go through all the wanna-bes and procrastinators, thru these relationships i found a couple of good HML that could loan up to 70% loan to value so now i'm set, i'll birddog (and "flip) until i have enough $$$ saved up to take a good deal on my own, by a residence for myself (subject-to of course ) and go from there

• 
  mauldin13th May, 2003

  That sounds very interesting. I'm not sure what bird doging is...
  
  Mick

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  way_motivated14th May, 2003

  bird dogging i meant