I need some advice on how to start. My goal at this point is to get in the door with a pre qualified renovation loan in a market where I believe 200k is reasonable. I've never gone through this process but the market requires me to be pre qualified in order to make a quick offer when an opportunity comes available. Any advice or warnings for a new guy? I'm starting off not using an LLC or sole proprietor business and hoping to role this first initial purchase into one later on down the line as I get more experienced and confident.
Check out the 203k loan! I recently closed on a $1mm fourplex in Jersey City, NJ and wrapped in a $450,000+ renovation budget into the same note, totaling over $1,450,000 with just $60k down. For more details check out my twitter thread on my purchase:
Feel free to DM me on here or on Twitter if you have any questions.
So a "renovation loan" aka 203k is for a fixer upper you want to live in for at lease 1 year. Is that what you plan on doing? If not you are going to want either conventional or hard money. Not sure what area your in but we are in south jersey and happy to help with any questions as well.
@Sean Watson, how are you, welcome to BP. I used a construction loan product that gave me the choice for personal name and or LLC. I opted for the personal name due to the volitility in the LLC market all three projects this past year went great, properly insured the properties and received 30 year mortgage options in the 3's for long term BRRRR hold on them. Let me know if you have any questions. Regards Joe Scorese
@Tara Sullivan thanks for the information! I must have overlooked that while researching the specifics of that type of loan. I am Iiving in a VA loan home right now and wouldn't be able to use a 203k loan like that so I'll look into other options. Thanks!!
Yw! what we do is we call as many lenders as we can find and see who is the best fit for that property. Lenders are all so different so just start calling and talking with as many as you can. Hard money also seems scary but it’s not we have used it almost every time.