Hi Everyone! So long story short there is a property that I found that is available and being sold "As-IS". The explination I got was the owner is older and doesn't want to do any repairs, so any work would fall on the buyer. Right now it is listed for $165K. My guess is I could get it down a little more to around $140-$150k. It would probably need $60k in renovations and that's just a guess right now but the AVR of the property (going off comps that are listed and sold in recent months) is roughly around $250-$280k.
So my question is where does one start with trying to raise funds. Do you go to a HML, Private, etc.?
I have a good paying job for straight out of college $55K.
I have no debt to account for anymore.
My only expense right now is Gas as I live with my parents to save money.
My credit score is 760+
Where should I look at and if anyone has any recommendations for the Chicagoland area lending wise that would be great.
I recommend reading @Brandon Turner book on Investing With No or Low Money Down which can be found in the bookstore on this site!
One thing it talks about is creative partnerships. That’s what I am currently using to get deals done with my brokerage owner!
- @Mike Rueffer you need to look at HMLers and Private Money, because you'll need both
- I can recommend a few HMLers to speak with
- For private, you should print out your analysis and present it to your friends & family as an opportunity
- Do not rush the deal until you have the money in place to close & rehab and for carrying costs
- I use the 72% Rule here in LA, so I'd only do this deal if I could get it for 72% (cost and rehab) of the ARV. Thus, using $250k, Your all in is $180k. With rehab at $60k, your Purchase price should be $120k.