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Nathan Samuelson
  • Marion, IA
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203k Rehab Loan to buy a HUD home?

Nathan Samuelson
  • Marion, IA
Posted Apr 9 2014, 22:34

Good evening everyone! So I have been trying to access the HUD webpage but it appears to be down, I'm getting the error "Page Not Found. We're sorry! This page cannot be found. Please visit the HUD Homepage or use the search box above to find what you are looking for."

So I figured I'd ask here in hopes that someone could help me out.

Ok, so here's the deal...I'm new to Real Estate. I've got the basics down (I think) and I am seeking more knowledge about the subject. One of the big problems I'm having is "where to get money"? I see a lot of potential in purchasing HUD homes, re-habbing them, and either renting them out or selling them after it's fixed up. Of course I do my research to the best of my ability (I am not a licensed REA, so I can't access the MLS) by using Realtor.com. I look for homes that have SOLD within the last 6 months within a .25 mile radius of the HUD home I'm looking to buy, so I can better price my bid...I know how to install kitchens, lay carpet, paint, ... pretty much everything cosmetic, so total cost put into the house will be cheaper then hiring a contractor....Anyway, if I plan on selling the house after I get it at a good deal, I'd like to tell cash buyers in my area first to see if they're interested, or put it on the market, all for ~15% cheaper then retail value. My stipulations would be I have to make at least 15k profit minimum if I were to sell it outright after fixing it up, otherwise I'd look at other options.....

Anyway, my only qualm right now is, Where do I get the money for this? I am too new to the business and I dont know of any private lenders who'd lend to me because I have no track record, and I know banks don't really like giving out loans for home repair purposes. What are my other options to even buy this house? I've heard of the 203k loan, but can that be used to PURCHASE the HUD home? Or do I have to BUY the home FIRST, and then get the 203k loan?

Any help you can provide is greatly appreciated!!

-Nathan

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