OfflineHi can anyone help me answer this question? When we use the insiders cash funding do they also include any repair cost? Or is it just for the purchase price? I am not sure how that works I called and they said I had to submit the paperwork first then someone would call me within 72hours to discuss if it is a good investment. I do not want to put in an offer and not have the repair funding as well. If anyone has used the insiders cash yet please help.
Thanks
Maria
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Maria
"Thoughts create words, Words create actions, Actions creates dreams"
To my knowledge these sources of funding only will cover the purchase price. They only will 100% finance a deal that will be resold in 1-3 days so they collect their 2% of original loan + $495 processing + original loan amount They do also have other loans that are for 3 months (for rehab), but they will only fund 50% of the purchase price for that.
With that said, there is always a way to fund your deal! I'm not an expert at this, but I am sure someone more experienced will come along and provide more information on this.
Glen
"The man who acquires the ability to take full possession of his own mind may take possession of anything else to which he is justly entitled."
-Andrew Carnegie
"Man often becomes what he believes himself to be. If I keep on saying to myself that I cannot do a certain thing, it is possible that I may end by really becoming incapable of doing it. On the contrary, if I have the belief that I can do it, I shall surely acquire the capacity to do it even if I may not have it at the beginning."
– Mahatma Gandhi
Hi Marie,
I wholesale and rehab. I have not used Insider's Cash or other transactional funding, but as I recall Glen is correct, AND you are correct. For 100% of purchase price, I think (not certain, here) that IC will fund as a matter of course, but they want you to disclose your exit strategy and approve it. When they do the longer funding, at (I thought it was up to 75% of PP), they want to approve the whole deal.
Many, many investors use hard money-- it's a good thing, but get all the facts, and shop it. I find that Private Money is most excellent. BUT the simplest way to go is to sell the property before you close-- and have your buyer fund it. This is most easily accomplished by shopping per your buyers' criteria. Get a few buyers and you'll find many have similar criteria-- so SHOP til you Drop, lock it up, move fast on your due diligence, sell it, then close with your buyer's funds. The only thing it costs you is the EMD (and that should only for a few days).
I like to also have a partner on hand to do Joint Ventures with-- he funds the deal (the purchase) AND the repair costs, you do the work. The split is 50/50 IF he/she does some of the work and advertising/marketing. If you do all the work-- you get 65-70% of the profits.
Do find out and shop the hard money, always be on the lookout for Private Money-- get the details. stay in touch with them. You may need it at some point, but your buyers may need it as well and you need to hook them up.
Hope that helps!
-Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Hi Tina,
You really are a Super Star! I do want to do flips and I was thinking of using the 75% LTV with IC they give you 3 months. I am looking for buyers and sellers to start my list no one yet:(. I as many americans today have fallen to economic hardships and am trying to get back on my feet. I know I can do this I have the faith and motivation but no cash. I am a two time cancer survivor and had to cut down on work hours and many of the bills got behind. I was robbing peter to pay paul as they say. I just need to get a couple of deals under my belt to get me started. My credit is also shot and I have a low credit score but I have been working on it. I have been speaking to a potential investor how ever he has not done this before and is very leary of the whole thing. I do not know if there is anyone that might be able to help. I can find great deals I have worked in Real Estate for over 14 years I am currently a broker now. I appreciate all of your help and advise.
Thank You
Maria
"Thoughts create words, Words create actions, Actions creates dreams"