New Investor In Need Of Rehab Money

I am considering making cash purchases of properties for less than $15000. These properties will need approximately 10 to 15k in rehab. I am trying to figure out ways to borrow the rehab money. Will I be able to take out a mortgage on these properties as a way to obtain money for rehab?

Comments(6)

  • DFincher080922nd August, 2009

    Thank you for the feedback. I plan on holding and renting. In these areas the rent ranges from 500 to 800 a month. Once I develop positive cash flow I will then look to buy, rehab, and sell.

    I have discussed HML w a broker but he said many dont like to lend less than 50k. I may purchase several and borrow from a HML to rehab them all at once.

    Just looking for the best strategy to start out.

  • DFincher080923rd August, 2009

    I have spoken with several brokers who seem pretty confident that with a credit score above 700 we can get a bank to refi to get out from under the HML.
    Although brokers seem confident, I really need to hear from actual investors to get a better perspective. I have done some research and identified banks that are still offering loans on investment properties but guidelines are very strict.

  • commercialking23rd August, 2009

    Depending on where you are located I may be able to help. Rather than use your money to purchase and borrow the rehab money I have a big stock of houses where I could finance the purchase for you if you had the money to do the rehab. I might even subordinate some or all of my purchase debt to a new first when you refinance.

  • DFincher080923rd August, 2009

    I would like to hear more. I reside in NYC and having been researching areas for investment that include Rochester, NY Buffalo, NY, Philadelphia, Penn, and possibly Detroit, MI. Where are your properties located?

  • commercialking24th August, 2009

    All over the country but I must say that at least Detroit and Buffalo are pretty dicy places to start investing right now. I like Philly but that may be a personal prejudice and I have no information re the market there.

  • commercialking24th August, 2009

    You can e-mail me at hotmail-- same username as here.

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