My name is Joe. I live in Cheyenne, WY. I purchased a house in Sept. 2017 and currently rent the bottom out. I think for a first home, this purchase was the right thing to do. I rehabbed the bathroom and kitchen. I am looking to move to Central Texas in the near future. I will most likely keep this one as a rental. I am interested in flipping homes. I recently reached out to a private lender for the first time to see what this is all about. With my credit score around 720, he told me that I should have no problem getting 60-100k with 0% interest for 12 months. That's great! But that also opened up a whole bunch more questions for me. If I were to use that money for rehabbing the house or a down payment, I would still need to have the house financed by a bank, correct? Would I have to keep that money in my account for a couple months for the bank to see I have money? I know that I am missing a few steps. Probably a lot of steps. I really appreciate any advice at all. I am reading the beginners book as well as many more over the years. I just feel that this is the time to putting things together. Thank you all and hoping to meet a bunch of great people. Thanks again!!
I'm a little confused, but it sounds like financing is your main question. Financing can come from a bank or private lender or both. How much you will need depend on the cost of the property and the rehab. Flipping houses a is different financing plan than a traditional 30yr mortgage so keeping money in the bank for a certain time period really has nothing to do with it. On a flip, your local bank will need your plan, plus usually 30% of the loan. Private money will just make the terms with you. My advice would be to invest a couple bucks in the excellent book with the super long title. BiggerPockets Presents... The book on investing in Real Estate with no and low money down real life strategies for investing in real estate using other peoples money. by Brandon Turner.
I didn't mean to confuse anyone. I was just trying to introduce myself. But thank you for the book suggestion. I am going to order that as soon as I finish this. Financing is definitely one of my bigger questions. I'm going to read this book before I keep asking more questions. Thanks again for the advice.
Feel free to ask any questions here! Cheyenne also has a meetup that you can find on meetup.com feel free to join there and ask questions.
@Joseph Bratt first thing, stop talking to the person that told you they will do a 0% loan, unless it is a relative of yours. NO ONE will do that for you, except maybe a relative. Go to your local real estate investor meetings and see the lenders there. The small price of joining the group will more than pay for itself.
There should be plenty of lenders there. You can see and meet people who are also in the game. Buy a few people lunch over the next few weeks(investors that you meet locally) and see what they are doing and who they use for financing. I would think that $150 to join a local Real Estate Investor Assn (REIA) and $100 for 2 or 3 or 4 lunches with other investors will be the best money you ever spent in your life.
Thank you for reaching out. That was the first time I called a private lender to see what it's all about. I think it is really great having this forum to talk about what to watch out for. I think after getting through the first flip and seeing how this works will really be great. But, I do want to take my time and meet and get the advice you all are giving me. So, thank you!!
hey @Joseph Bratt - come to the real estate meet up in town, i think june 17 (3rd tuesday every month, in the evening)