First time here. I've sent off a letter to two separate homewoners to ask about their plans for their property. One is abandoned and the other looks abandoned. I have yet to receive an answer.
I know I should send another letter (first letter went out last week).
The homes are in southern California and our market is slowing down. Not sure where I would get the money yet (hard money?).
Just looking for advice. The plan would be to fix and flip. Both homes are in very nice neighborhoods - just like right out of the how to books. worst homes in good neighborhoods.
That's great, it sounds like you've got a pretty good idea of how to get started. Here are some options for financing:
1. Hard Money Lender.
2. Private investor (could be cash investor, but if he can come up with down payment and has good credit then this can work as well)
3. Sell the project to someone else wholesale (i.e. bird dog)
4. You can buy the property subject to the existing loan(s). This would require you to pay enough to bring the property current as well as whatever monthly amount is stated in the original loan(s).
Remember though: cycle time is going to be crucial in any kind of rehab deal. You want to be able to fix the property QUICKLY and sell it QUICKLY for a profit. Sitting on the deal with a hard money loan, etc. is going to eat up profit FAST. So you need to find out what the "quick sale" price would be for each property (hint: don't use the highest comp sales)