Finally getting started on my dreams and goals! Just got a purchase contract in the mail today for a little house located in a nice small community. Only paying $645.00 for it. Tax deed auction. It didn't sell at auction. Small neighborhood so there's no real esate investor around here that I am aware of. Yes I know I still have to pay for a title search and also to get the title switched over to make it marketable. So hopefully the title search will come back good and clear! Then I can proceed to start rehabbing it. Have about $5,000 to rehab the property.Peeked through the windows and the carpet looked newer walls need paint and needs some outside work! I do want to keep it as a rental but right now i want to make a fast nickel instead of a slow dime. Wanting to get it rehabbed within 2 months sell it and reinvest the money.Plan it to keep flipping till I have enough to buy Multiple unit apartments. I am shooting big for my goals. I want 1000 units by time I am 25! I will do everything in my power to make it happen! I do have a question could i fix it up rent it out (rent around here is $500-$600 a month) then when its paid off which wouldn't take long, refinance it? Thanks in advance!!
As long as there's equity, yes, you can refinance.
Different banks have different seasoning requirements, so find out what they are.
18 years old! Good for you. Wish someone had clued me in when I was 18. Didn't learn this stuff till I was in my mid-30s.
Here's another strategy. Go to ebay or **************. Show the property and let people bid on the down payment. You are the bank. Show the terms of the loan on the auction site. So lets say you put it out there and you get a down payment of 500, you could also put any fees you want to collect. Doc fee, closing fee, etc. You have your 650 you have in the house and your house is paid off in a year. Why would you need a bank at that point? Good find on the house.
@Joemclain I don't the bank for this house. I was asking once I get the house rented if I could go to the back and get leverage using the house. To get more money to reinvest into other properties. I belive they call it BRRRR ? Thanks for the advice from both of you!
I don't *need the bank. Sorry I forgot a word.
Congratulations and welcome to BP, @Kenneth Lee . I hope you a way to make money because at age 18 you probably don't have much of a credit history which will make it difficult to get funding. 1000 in 7 years is quite aggressive, but I wish you luck on it. If you're able to do it, write a book and sell a course. Anyway, do you have rehabbing skills yourself or are you going to contract it out? Obviously if you're going to be shooting for 143 units a year you will not be doing the work yourself. This means you need to build a team of professions that include multiple contractors, a lawyer, an accountant, likely multiple wholesalers and so on.
You might be doing a lot of rehab and sweat equity building at first because of fewer resources. It took me 4 days to paint the house I just bought. I can really do a good paint job, but i'm not handy with plumbing, electrical, flooring, etc. So I contract it out. Once you scale to a larger number of units, you just can't do this yourself.