Hey guys! I've been busy the last couple months, and finally got all my ducks in a row. Getting my LLC set, and particularly getting financials in order took longer than I wanted, but it has been constant progression.
Here's the quick, down and dirty back story: I bought my primary residence (first property) in August 2014. I bought it for 89K, 20K in renovations, and now it is appraised at 180K. After everything was completed I got a HELOC, set up my LLC and bank accounts. I networked with many people and found some hard money lenders that I was ready to work with. After this I was all set and ready to get to work.
After that I had a few deals fall through, got outbid on a few properties, etc. I found a property on the MLS in my area and jumped on it. The property is a HUD home, which is a twin in a nice neighborhood not far from my home. Some details:
Rehab: $40,000 (This includes 15% unexpected cost)
Annual Taxes: $4,000
Rehab is scheduled to be 8 weeks, which includes kitchen, bathroom, add powder room, build deck, finish basement, refinish floors, paint, landscaping and a few other items. What I love is it is essentially the same thing I did in my house just a few months ago, and virtually the same layout too.
Now the best part...after I got it under agreement I put together a really nice packet to send to my hard money guys, some banks, and some potential private money lenders. I'm THRILLED that I got hooked up with a lender that is financing 75% of the total cost (acquisition + rehab) at 5.25%, and 1 point. NETWORKING PAYS OFF! This alone saved me thousands.
I have a home inspection set up for the end of the week and settlement is scheduled for April 17th.
I left out many details to try to not bore you guys to death, your time is valuable! Please let me know if there is anything in particular I should look out for or expect with a HUD home or any other concerns.
How did you find the hard money lender?
Thanks, wish you the best
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.