Clayton, NY · Member since 2015 · 157 posts · 35 votes
Looking for some advice/guidance on this. I currently own a single wide sitting on about 1.2 acres of land. I just started the process of doing a total remodel/gutting on it and was wondering if anyone had suggestions on how I could go about getting financed for the amount to complete the project now vs doing it in small chunks as I can afford it. My credit is less than great due to a few setbacks last year but everything has been going smoothly since. The idea is to remodel it and then take out a mortgage on the home to help finance my first rental investment. I'd really like to just get it remodeled at once as i'm still living in it now. It is an older (1995) single wide and I am unsure if I have any other options at this point other than just piecing it out over the next year... any feedback is much appreciated!
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
Amber, really, IMO, pay as you go. Sounds like the only financing you might get would be from a HML, that's high cost financing. But, it's also short term, so how would you pay it off?
Are the wheels off and is it taxed as real estate? Another hoop to jump through and the MH is 10 years old, not sure where banks are drawing the age limit now on a MH.
The trick to house hacking is not biting off more than you can chew, gut the whole place and you'll live in misery. One room at a time, one wall, a bathroom can go quickly.
Take your time, build up your inventory of supplies, buy deals. You aren't going to turn a single wide into a luxury home and get your money back. Want a good W/P tub, you can find used ones too, no one will know.
Financing will be tough, so I suggest you live with it, get it done as you can afford it and have it paid for! Good luck :)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
Amber, really, IMO, pay as you go. Sounds like the only financing you might get would be from a HML, that's high cost financing. But, it's also short term, so how would you pay it off?
Are the wheels off and is it taxed as real estate? Another hoop to jump through and the MH is 10 years old, not sure where banks are drawing the age limit now on a MH.
The trick to house hacking is not biting off more than you can chew, gut the whole place and you'll live in misery. One room at a time, one wall, a bathroom can go quickly.
Take your time, build up your inventory of supplies, buy deals. You aren't going to turn a single wide into a luxury home and get your money back. Want a good W/P tub, you can find used ones too, no one will know.
Financing will be tough, so I suggest you live with it, get it done as you can afford it and have it paid for! Good luck :)
I am starting to see the benefit of waiting it out more and more. I have looked into HML's and didn't exactly like the interest rate that I saw most of them charge. I am in the process of building a buyer's list so that I can start wholesaling properties and hopefully that will give me some experience in the real estate field and also bring in some money to help get this going a bit faster. Have you had much experience with dealing with wholesalers or doing wholesale deals yourself?
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
LOL, yes, I "wholesaled before investors dreamed it up. But not the way most wholesalers try to do things. If I ended up getting a property back, I flipped it to an investor, all I needed was the payoff. If I had the deed, from a DIL, they went out the door a little higher. I assigned a deal last year, playing around. It's not something to build as a business in unless you have a license......there are better ways to make more money.
Since you have a state license, I caution you about getting into wholesaling, you could lose your insurance license from illegal real estate activities!
Seems all I have for is bad news.....
Learn real estate like you did insurance, you didn't begin by going out the door with a sales pitch. I know because I had that license as well. Learn real estate before trying to deal in real estate.
Your insurance agency is a great affiliate operation to real estate, be even better if you got your RE license! One can feed the other! Good luck :)
Clayton, NY · Member since 2015 · 157 posts · 35 votes
11y
Wow! I had no idea that I could loose my insurance license... how exactly could that happen? I'm searching for the next salesperson course to take in my area so I do plan on getting licensed, and I have already spoken with numerous of local real estate agents in hopes that they could offer me some advice. None oh which knew anything about real estate wholesaling... which I found odd considering they are agents. Right now I'm just in the process of building a buyer's list and getting myself out there, networking, things like that.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y
Amber, the state department of finance, generally the higher agency has departments under them, insurance department, real estate, dept. of banking supervision, finance companies. Each requires a professional license. Conducting business without a license can keep you from getting a license or cause you to lose any other license held. Each state is different, but these aspects are generally standard, mess up and have a felony lose your license, some misdemeanor charges can do the same thing. You can put just about any professional license at risk dealing in other professional areas illegally.
Read the wholesaling threads, like "why wholesaling" you'll see pros and cons and issues that agents have as they are to represent the property owner and not get into self dealing matters. :)