My wife and I have been in the mortgage and real estate business for 16 yrs purchased 3 properties in CA & lost everything in 2009. With our credit and cash healed sufficient to now look at hard money to bridge our gap of cash. We'd like to start with something simple $50k cash purchase with a $20k-$30k update cost with a $125k min $140k comp'd neighborhood.
Note: My wife is an agent & has 2 investors who have done this 6 times in the past 36 months so we feel we know the numbers & there is allot of similar properties..
Do we just go for it with hard money???
Hard money is fine as long as your exit strategy is solid and you have enough margin for error. Also, it helps that you have partners with experience in the process because there is no time to waste.
@Kirk W. Good plan, good recovery . Never give up. Persevere!
As long as your numbers work even with hard money costs, I would I still use hard money on some deals and I've done about 50 flips since 2010.
I target at least 10% return on total investment (purchase, reno, hold costs, closing costs, etc-- ALL costs). If I can hit that with hard money and I don't have money, I'll usually do the deal.
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