Posted by E.Eka on November 19, 2003 at 09:01:10:
Could be a candidate for a subject-to. You’d get it under contract and then sell the position to another investor and maybe get $5,000 in the deal. Take that money and pay off some debt so your Fico score will increase. Do a few of those deals and you’ll pay off a good portion of debt. Then you can go into wholesaling and flipping.
Possible first deal, have many questions! - Posted by Sheri in OK
Posted by Sheri in OK on November 18, 2003 at 16:23:37:
My husband has found a house he wants to buy and flip. The owner is an elderly woman who owns it free and clear. She wants to sell, will take $60k. Houses in the neighborhood go for $80-85k. Needs paint and carpet cleaned, not much else. We talked to a friend who has lots of rentals, he advised us to get a bridge loan from the bank for $65k. What exactly is a bridge loan? We have good credit, but lots of debt right now, including a mortgage, car payments, student loans and credit cards. How likely is it that a bank will give us a bridge loan? I’m concerned that we won’t qualify for any kind of loan, and if we actually did then I’ll be worried about flipping this house quickly. Any thoughts or advice? Thanks!
Sheri
Re: Possible first deal, have many questions! - Posted by rycherx
Posted by rycherx on November 18, 2003 at 19:50:00:
I don’t know what a bridge loan is.
If you can get the house back on the market and sell it 15 k over the price you bought it quickly, it is a good deal. If you have trouble flipping it, I see it being a pain every month paying the loan amount.
I’d say it is a good deal if you can flip it rather quickly.
Re: Possible first deal, have many questions! - Posted by Bob
Posted by Bob on November 18, 2003 at 19:37:31:
Sheri. It sounds like a workable deal to make a few dollars if it only needs minor work. Check what houses are selling for with a realtor (comps) and see how long they are sitting on the market before they sell (30 to 90 days or less). Also have a home inspection to check for any hidden defects (cost about$350 but well worth it). If everything looks good then ask her for owner financing. She will carry a loan say for 6 to 9 months. You can offer her 6% with interest only that way she is getting some income, then when you sell the house she gets her money at closing. It would be costing you about $350 a month to hold the property while you are fixing it and trying to sell it. This would be the best way to avoid the hassle of working with a lender. Try it and see if she will work with you on the financing. She will get a quick and hassle free sale on you can get the property you want without any hassles. Good luck!