OfflineHi DG family. I am bird-dogging for a friend in FL and have ran by what I think is a GREAT DEAL...
The ARV on this persons 3/2 house is 85k, she started her negotiation at 35k (medical and a lot of repair) and 3 months later I have got a contract for 22k. It will need 15-20k for a full rehab.
I have told my partner what I am more then interested in the property. He told me it is a great rehab project or rent and hold.
I have never owned any property but I feel that I should go for this property. What would you do in my shoe's. What should I ask, What should I do?
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that is is the question? Do you want to fix it yourself? It sounds like you do or rent it out. If that is what you want to do then do it but if you want quick cash you can wholesale it to a list of buyers, do you have buyers? It all depends what you want to do & do you have buyers to wholesale it.
Tony
Go faster do more! GFDM!
Looks like there is some good money on a fix and flip here. There are some loan options for fixer-upper homes that allow the borrower to wrap the cost of the renovations into the loan. Here are a few:
FHA Loans
FHA which offers many different types of loans geared toward first home buyers and owner-occupants. They have programs that only require 3.5% down. Be aware, however, that loans with less than a 20% down payment will permanently carry mortgage insurance and their rate is higher than other lenders. Their 203(k) loan program even allows borrowers to wrap renovation costs into their mortgage when they buy a fixer-upper.
HomePath Loans
This is a labeling for loans on all Fannie Mae-owned foreclosure properties. They offer low down payment requirements, no required appraisals and they do not charge mortgage insurance. These loans are available both to owner occupied purchases and investors. The HomePath Renovation Mortgage is available to borrowers who plan on renovating the house.
Irvin, you say that you're birddogging for a friend, but that you found a great property so now you want to keep it?? Do you have the funds ( or a PML) to buy and fix to hold? Do you have a contractor to do the rehab? Have you gotten estimates for the rehab? Have you done any rehabs before? These are only a few questions that come to my mind right now...
If you need to get cash fast, then obviously you may want to wholesale this deal, or partner with another investor to flip?
Wishing you success,
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Hi Irvin,
Is the property free and clear? Do your due diligence of the numbers.
Reynolds & Haidee
A great deal is only great if you have the cash or financing to buy it and then the capital to either fix it or flip it. This deal really hinges on whether or not you can financially buy the property. Even if you flip it, you would need the purchase price (unless you wholesale it with a double close).