What's The First Step?
here is my situation: I want to purchase my first rehab property (none in mind yet). I have very little cash to work with, about 1000, credit score of 750, and I cannot document my income for a conventional loan. I'm also not working at the moment. I have read up on "hard money" and "no-doc loans" what do I need first, to find a property or do I need to find financing first? I am ready to jump in but I don't know what step to take next. what should be the first thing I should do when I wake up in the morning to make this happen with the given situation?
Thanks in advance!
Rehabbing is very difficult with little money. Are you very handy? If you are handy maybe you can find a money partner - one with money or can get a loan.
Brenda
Hey there....I am by no means an expert, only some one like yourself looking to gather as much info as I can in order to make the best decisions possible. I am also looking to do my first rehab soon. First off, HML and no doc loans are very different ( you may already know this). No doc is usually a 30 year fixed or adjustable loan that simply allows you to obtain a loan on your credit score alone....no work verification, no income verification, etc. Slightly higher interest rate, but not much. Usually for thos who may be self employed and have trouble proving income. HML's and usually very short term and high, high interest rate, but allow you to get a deal done with little or no money down. PM me and I will go into HML's in more detail. They are usually best if you are going to fix and flip right away.
My advice would be to figure out what exactly you want to do.....rehab and then....?
Flip, rent, or LO (lease with an option to buy)? Once you know that, you can start gathering as much info as you can from those who have been successful doing just that.
I am just starting to check aorund for loan options so that when I find a great rehab opportunity, I will have my ducks in a row. I also already have my RE Agent setup so that I can start listing the property as soon as I buy it...someone may want to buy it halfway through the repair process...who knows.
I have found a great website here in Atlanta that offers great advice and insight on just about all aspects of REI (especially rehabs)..a kind of flowchart, but very informative. Leave an email and I will send it to you. Also, if you ever want to swap ideas or questions...PM me. Good luck!
Brian
[ Edited by suntzu18 on Date 02/25/2004 ][ Edited by suntzu18 on Date 02/25/2004 ]