Posted by craig on February 04, 2004 at 11:06:46:
Ask your broker about interest only payments, or defferred payments. Although I am not sure if they apply to hard money loans. Wish I had more experience to help you, but I dont yet. Maybe someone else can answer better. …Anyone?
question…help? - Posted by brad-ky
Posted by brad-ky on February 04, 2004 at 06:53:03:
I am close to doing a deal on a rehab. The profit is there,but my question is, After the deal is done, how do I pay the monthly payment. I dont have any money but I am going to do this deal. Please help me with ideas on how to finance.
Re: question…help? - Posted by Kevin IL
Posted by Kevin IL on February 04, 2004 at 08:14:38:
Brad,
Congrats on getting out there and doing something. Take the advice you’ve been given very seriously. Rehabbing is a very cash intensive business.
You might want to consider finding a money partner for your first rehab. I used a partner on my first project and I’m glad I did. We each ended up having to put a few thousand dollars cash in to the deal that wasn’t planned. It was a bit tense until we sold it retail.
YOu may want to consider wholesaling the property to build up cash reserves. Good luck!
Re: question…help? - Posted by LeonNC
Posted by LeonNC on February 04, 2004 at 07:22:14:
For your sake I hope the profit is there. And I hope the house is in an area where houses actually SELL! Don’t do a deal just to do a deal.
Not having any money is a good reason NOT to do a rehab. Use those resources from tmofa-IN and see if you can line some money up. You will need money from DAY 1 of the rehab until the day it sells.
You can use a credit card if you have one. But boy it really should be worth the risk of having to stack up a bunch of debt.
Good Luck
Leon
Re: question…help? - Posted by tmofa-IN
Posted by tmofa-IN on February 04, 2004 at 07:02:56:
Hey Brad,
You can offer to pay back friends or family for making the payment.
Check from Credit Card.
Pawn some possessions.
Short term loan from a place like Beneficial.
If you don’t have the money for monthly payment,how were you going to pay to rehab? Look into open an account at Home depot or some store like that and see if you can get 6 months same as cash.
Peace,
Teddy
Re: question…help? - Posted by brad-ky
Posted by brad-ky on February 04, 2004 at 08:34:20:
how exactly does wholesaling work? Im not very familiar.
Re: question…help? - Posted by craig
Posted by craig on February 04, 2004 at 08:58:40:
I’m surprised no one has mentioned this yet, but you may want to try a hard money loan. This will give you money to purchase and rehab. Holding costs can also usually be covered by this loan. I am almost in your same situation, I plan on buying a rehab within a week or two. I will be partnering with someone for the project. My loan will require 10% down, which my partner and I will split. (Of course we will split the profit as well). If you can creatively come up with the down payment for the loan, most costs will be taken care of. Not all costs will be though, like inspections, etc… This is where you can use a credit card. Good luck to you.
Wholesaling 101 - Posted by Kevin IL
Posted by Kevin IL on February 04, 2004 at 11:17:09:
If you find a deal you get it under contract and then sell the deal to another investor. That investor actually does the rehab on the property. You make a few bucks over what you paid for the deal.
Read the articles and success stories on this site. Also do a search on wholesaling or flipping in the archives. There is a lot of detailed info available.
Re: question…help? - Posted by brad
Posted by brad on February 04, 2004 at 10:34:50:
what about making the monthly payment though? How much interest?