Where would be a good place to start looking for a loan?

5 Replies

Hi, I've got bad credit, no assests, but I know construction. I see homes here around the Cincinnati, Oh area, which are selling for under 10k, (I've been watching one up for auction, starting at $2,500 with a reserve of $5,000.) homes which in the right hands, (mine,) with enough capital, could be flipped for $100k plus. I have been looking for a loan of $50k for some time, but all I get are scammers. I am not from this area, I am here because my wife's mother is dying. None of my family are in the position to lend money of any amount, and for my wife's family, none of them are either, in fact, we help my mother-in-law out financially, as she is struggling her self. I know nobody in this area whom have this kind of capital, the people who assist us, threw the Va as I did 5 years in the US Navy, seem to have no clue what I'm talking about. Most of those people have a hard time wrapping their minds around the idea that I have no substance abuse issues, as most the veterans they work with do. 

Darryl,

My thoughts and prayers are with you about you wife's mother.

The topic of loans

Just look on Bigger Pockets to find the right lender: 

What you need: 

You have to have some kind of income to support the loan, and you have to have a down payment. Just cause homes are cheap in the big Red Machine town.  Does not make them a good investment.You have to know what is driving the local economy. Heck, Homes in Detroit are free. But does that make the a good investment for you? You also have to have a business plan about how are you going to make money with that property.   So the 3 most important points are Income and down payments or un-encumbered assets to pledge toward the loan instead of cash and a business plan.  Best wishes.

Will

1Crew Funding, Texas

You need to meet folks there and get to know them.

I'm not sure I'm buying the valuation you are suggesting, if homes sell for 10K even with repairs I doubt they would hit 100K, not without 80 or 85K in materials and labor.

Some vets are on drugs, not all, I wouldn't even go there, it's not the general assumption.

Sorry to hear of your MIL, but I wouldn't bring that up either, others may perceive you as being disparate and to negotiate a deal you can never appear to be disparate.

Find a partner, most likely someone who is in the area working on a house today could be one to cut a deal with.

Get an option on another property, you don't have funds to be messing with auctions.

You could go to the auction too, just to meet other investors who buy, you offer the construction side on terms rather than hourly or contract for the job.

Get your credit taken care of.

Good luck. BTW, welcome to BP.  :)   

thanks for the advice. I'm not desperate, I do have a job. I've been thinking the best plan is for me to save up, as I just started my new job, that's got me home every day, as my wife, and I have wanted. I'm told by other drivers, I'll be making around 1k per week, or more. My idea is to save up for one of these properties, and do everything for cash. You mentioned that you think it'd take a lot of money to fix up one of these homes, but I've got the exp from my dad being a general contractor since I was born, as well as my own work I've done that I know I could do way more for way less. My biggest issue is capital. So yeah, maybe I can do it without a loan. It would just take longer than if I had the capital, to turn the house over. Also doing it for cash, on my days off, will mean less capital to do the 3 things I have to sub out. Or at least it would mean longer for needing to save up to get the foam insulation done, which alone would increase the value of the home by at least 25% for the energy savings. The 2nd thing would be the hvac, as I have no exp with charging the system, so I'd prefer to get that done pro, and then the last thing is carpet. I can do everything else my self, with no help. So I guess I've got to do this the way I've done most everything in my life, with no help. Though I do intend to check for grants as the end of the year is near, which means gov spending will be high, so they can keep the funds coming that they already get. I learned about that from my time in the Navy.

Originally posted by @Bill Gulley:

You need to meet folks there and get to know them.

I'm not sure I'm buying the valuation you are suggesting, if homes sell for 10K even with repairs I doubt they would hit 100K, not without 80 or 85K in materials and labor.

Some vets are on drugs, not all, I wouldn't even go there, it's not the general assumption.

Sorry to hear of your MIL, but I wouldn't bring that up either, others may perceive you as being disparate and to negotiate a deal you can never appear to be disparate.

Find a partner, most likely someone who is in the area working on a house today could be one to cut a deal with.

Get an option on another property, you don't have funds to be messing with auctions.

You could go to the auction too, just to meet other investors who buy, you offer the construction side on terms rather than hourly or contract for the job.

Get your credit taken care of.

Good luck. BTW, welcome to BP.  :)   

Also, you also said, not all vets have substance abuse problems, but not all, and you're right. I'm one without. I don't even drink, not even socially. I mentioned it as it bothers me when I'm treated as though I do have one, simply because I need some financial help to get by during a time between jobs. I know many vets who like me drive truck, and pass random drug tests on a regular basis. Less than 2 months ago, I passed a hair follicle test, I'm told is accurate to 3 years back. At least 1 friend/vet did the same test, and passed as well. So thank you for agreeing with me that that assumption, is offensive. Also, thank you for your prayers, I pray for my MIL, and my wife daily, as she, my wife takes it hard.

There are ways to buy properties without using your own money (I was paid $15K to buy my first house).  You have to bring some value to the deal.  In your case it sounds like you bring the experience to manage the rehab.  I would look at playing the Wholesaler role, where you locate properties that meet investors' criteria, put those properties under contract, and then either assign the contracts to an investor for a fee (in CA the fee is between $5k - $10K) or you do a joint venture with an investor where you split the risk and the profit (you bring your time and expertise, the investor brings the money).

My company manages these types of deals so I can give you more detailed information if you need it.

God Bless You!

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