Basic question about financing distressed properties

1 Reply

Hey guys,

As you can tell I'm fairly new around here so any and all help is appreciated. My questions are about the process of finding deals and financing.

Example: I find a house to rehab and resell on the MLS. At what point do I talk to a realtor and put in an offer and when do I try to find financing?

Once the deal is accepted do I start trying to look for lenders willing to invest? What happens if nobody decides to finance (especially if you're looking to close early)? Is the best way to do this to talk to a lender before looking at houses so that they kind of know what's coming?

@Jeff Ashachik  Welcome to the world of real estate investing!  This business is arguably one of the top ways to gain wealth.  If you research ways to get rich, real estate is always in the top 5.  With great reward however comes a lot of work and risk so you'll want to be extremely careful and prepared for some very long days. If you succeed, it will be worth the effort. 

I started investing 13 years ago but I'm still learning new things every day. My advice to you would be to look at this as your first day at college where you just signed up for a medical degree.  You'll spend a lot of time with the "101" courses and slowly work up to the higher levels.  Trying to take short cuts can lead to very bad results that can haunt you for the rest of your life so don't give in to the temptation to skip your education.

To answer your questions...... rather than giving you my opinion about what to do next, I would strongly encourage you to spend more time reading books and learning the basic steps. J. Scott has a great book on flipping (available here on BP) and Gary Keller's "The Millionaire Real Estate Investor" is an incredible top-to-bottom source.  Learn first....then take (massive) action.  Good luck!