Lost In Vegas-need Advice
im a bartender in vegas, but i was a carpenter in chicago for many years. i would really like to get into the rehab aspect of the game, with ambitions of getting bigger, but lets get realistic and start where im the most comfortable (and for what its worth-the most knowledgeable). however-back in chi. my grandmother GAVE me a house, which i was going to use equity in to do exactly this, but then she went bonkers and forclosed on me so my credit took a dive. i would really appreciate any advice on what the heck to do next. hard money lender??? start out birddogging???? i can build em or fix em but am a literal moron when it comes to this. thanx for any help. 
Um, how did she foreclose on a house that you own outright? Or were you making payments to her?
in wisconsin when you get a house as a gift, you get assessed an "inheritance tax", which depending on certain criteria can be up to 50% of the value of the house (although thats rare). anyways, you are also legally allowed to "forgive" up to $10,000 a year. so what we did was: record a "mortgage" stating that on december 30th i owed her an annual "mortgage" payment of $10,000. then on december 31st her lawyer drafts a letter of forgiveness for $ 10,000. then lets say the house is worth $100,000--in 10 years its yours scott free and ole uncle sam cant do crap. but the problem with this was that since a mortgage was legally recorded::::ole grandma could ::::and she did!!!
You don't need banks or good credit if you find a good deal. Your Hard Money Lender idea is a good one. But most hard money lenders want to see that you have some of your own money into a deal, at least the first time they work with you. If you don't have the cash now, find a rehab property, sign it up on a purchase and sale agreement for 50-60% of it's after repaired value, then sell the contract to another rehabber for $5,000 to $10,000 cash. By using that money on the next house you get under contract at 60% of value, you can get a hard money loan, regardless of your personal credit. (I live here in Vegas also and this has been my experience.)
Best of luck to you![ Edited by MadWaloo on Date 11/04/2003 ]
Man, grandma was acting like the Godfather. You ruined my hopes of a good christmas from grandma this christmas.
Quote:
On 2003-10-28 15:33, chopperpilot wrote:
im a bartender in vegas, but i was a carpenter in chicago for many years. i would really like to get into the rehab aspect of the game, with ambitions of getting bigger, but lets get realistic and start where im the most comfortable (and for what its worth-the most knowledgeable). however-back in chi. my grandmother GAVE me a house, which i was going to use equity in to do exactly this, but then she went bonkers and forclosed on me so my credit took a dive. i would really appreciate any advice on what the heck to do next. hard money lender??? start out birddogging???? i can build em or fix em but am a literal moron when it comes to this. thanx for any help. <IMG SRC="images/forum/smilies/icon_confused.gif">
Chopperpilot,
Let me know if you are interested in hard money. We have investors here locally looking to do Vegas projects, but you may take the advice of others here and start of flipping contracts.
You will need money to get the loan, and although your credit won't be a determining factor, the stronger your FICO score is, the higher your LTV will be. If it's something you are interested, click on my profile then click on "My Lender's Program".
If wholesaling is something you are interested, we have some investor services to assist you while you starting out, until you establish some cash to put up for your future hard money procurement.
good luck