Posted by Patti- Jax,FL on September 11, 2000 at 08:13:37:
When buying from the Government you can’t just tie up the property, you have to qualify for a mortgage and then resell, at least this is my understanding. And to answer your question if I’m unable to secure a loan for the repairs I will market handyman special or FSBO for a small profit.
Thanks,
Patti
In need of Rehab money! - Posted by Patti-FL
Posted by Patti-FL on September 10, 2000 at 15:01:16:
Hello REI’s,
I’m about to close on my first VA purchase and after evaluating the repairs needed in the house($2500) I was curious to know if there is anyway I could get a loan to do the repairs without having to do overtime on my present job?
Info about the house: 3/1ba; ch/a;w/d hookup;hardwood floors;partially painted inside; kitchen need some work on the tiles and under the sink; no appl.;double garage and carport. After completing the inspection checklist from C.S. course I think it will cost around $2-2500 to get it on the market.
Sells price was $42K ($3000 closing/dow payment)the market in the area is $58-60k, I was hoping to L/O with $1500-2500 down $550-600 a month with $100 toward down payment with an 18 month lease.
This will be my first VA purchase and my broker has ran my credit and he told me I could buy up to $90K worth of houses from him. I have a home worth $72000 that I live in and well one is okay for now until I can get a lease agreement and then maybe purchase another one. I don’t want to over do it. Some advice please will be helpful.
Thank you all,
Patti
Re: In need of Rehab money! - Posted by Mark
Posted by Mark on September 11, 2000 at 24:29:23:
Are you going to do the work yourself and you need $2500 for materials or or you hiring others to do the rehab work? You can buy materials with a credit card or work with contractors that accept credit cards. You can take cash advances from credit cards as well. What is your current home worth? If you have equity, you may be able to get a line of credit (2nd) on your home. For a sum as little as $2500, you may be able to get an unsecured line of credit from your current bank or credit union. If all else fails, you could find an investor or partner to loan you the money and then pay them a good interest rate or a small portion of the profits. Hope one of these options works for you.
Good Luck
Mark
Re: In need of Rehab money! - Posted by JoeS
Posted by JoeS on September 10, 2000 at 20:32:38:
This is exactly why I chose not to go the CS way…cash poorness. If I had $3000 to invest, I could tie up 6 homes, find my retail buyer, take a contract to sell, sell the prospective note, cash out at around $8K per deal! Or I could take the 3K and L/O 1 house, pray for rehab money to fall into my lap, find a L/O tenant, get back my initial 3K as option consideration, and make 2-300 per month on the spread, and wait 1-2 years to sell and cash out. I’d rather take the former course rather than the latter one, a quick 8K now is better than 8K later.
Re: In need of Rehab money! - Posted by Patti-Jax,FL
Posted by Patti-Jax,FL on September 11, 2000 at 08:07:49:
Hi Mark,
Thanks for the input, I was hoping to subcontract out the work to gain some rehab experience for future purchases, my broker walked the property with me and made some suggestions. This way my L/O would be considered on the job training for hard money for bigger tasks. I would like to keep this one but if not I will sell to the highest bidder.
Thanks again,
Patti
Re: In need of Rehab money! - Posted by Charity
Posted by Charity on September 11, 2000 at 03:53:33:
Would you do the repairs on the house before selling to the retail buyer? If not would you just lower the price of the house by the amount of the repairs that are needed? Also how long can you tie up the house for? What if you don’t find a retail buyer in the time allotted? I am assuming that you use $500 to tie up each house, right?