How Much Money Do You Recomend?

Comments(10)

• 
  way_motivated15th December, 2003

  i would have to recommend enough to cover payments on the house for 6-12 months at least justin case it took that long to sell, also have a good cushion (10-30k) to cover anything that might come up that you don't expect (because it probably will) but there is no maximum so the more $$$ you have the better

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  nebulousd15th December, 2003

  If you use private money, you won't need any of your own. Get knowledgeable on the process before you go borrowing private money.

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  kingmonkey15th December, 2003

  Thanks for the help guys. I'm learning about private money right now and how to estimate repairs. There's a hell of a lot to learn!
  
  Thanks

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  nebulousd15th December, 2003

  Ron LeGrand's take on Wholesale/Retail is great. If your not already, you need to check it out. Also try to get your hands on his creating private lenders for your deals audio set.

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  OnTheWater16th December, 2003

  We purchase rehabs, and what I do is simpy talk to people about what I'm doing. I'd say 90% are interested and about 10% put 100% of the money!
  
  All our rehabs are financed by our partner -that's no money out of our pockets
  
  There's a book entitled Find it, Buy it, Fix it. Give that a read as it covers quite a few things that we didn't think of. It also provides a check list of possible repairs a rehab could require.
  
  Thanks,
  
  OnTheWater

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  wallstreetcappers16th December, 2003

  Have enough money to do the repairs, cover the holding costs, then add another 30-40% on top of that.
  
  Getting a private money lender is great, but it can also be an expensive way to get into the business. They serve a purpose, but I would not borrow private money to do the work. The interest rate is way too high, and if you borrow that much, then the property had better yield you a 40% return, because you will need that extra cushion for worst case scenarios..and there are always many of those.

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  collegekid19th August, 2004

  This sure doesnt offer much hope for the newbie trying to get into the market. Those reserves seem really high. I guess that is why everyone keeps saying that you got to get creative.

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  commercialking19th August, 2004

  Well two things, Kid.
  
  1) nobody said it was easy.
  
  2) the question was "how much do you recommend?" Not "how can I do it for less?"

• 
  mattfish1119th August, 2004

  Quote:
  On 2004-08-19 12:40, collegekid wrote:
  This sure doesnt offer much hope for the newbie trying to get into the market. Those reserves seem really high. I guess that is why everyone keeps saying that you got to get creative.
  
  
  
  My opinion is that newbies shouldn't get into rehabbing... AT ALL! Once they are knowledgeable about real estate enough to take on a rehab - they aren't newbies anymore... They have a good understanding of buying/selling real estate and the knowledge to get creative if need be!!
  
  Start wholesaling, become buddies with the rehabbers you are wholesaling for and learn the business!
  
  Go Get Em!
  [addsig]

• 
  Stockpro9920th August, 2004

  IMO I think this is the toughest part of the RE game. It requires the greatest amount of cash reserves, rehabs go from 10K in repairs to one I looked at in Sandy Utah to over 100K not mentioning carrying costs etc. YOu will need to know about sub to, LO and other techniques as well as the estimating end of rehab.
  I have said it before, the Kevin Myers book would have saved me 50K in the beginning had I read it first....
  
  _________________
  "Chance favors the prepared mind..."[ Edited by Stockpro99 on Date 08/21/2004 ]