Newbie needing advice

5 Replies

Needing advice: I am a newbie and have some questions. Please advice. I have, I believe an opportunity to make a move into my Realestate Investing! I have come across a random fried of the family whose in dier straights and looking to off her house for a good deal. $15000. Comps show will need a little fixing up but could go in the 65-80 range. My initial thought were to B&H and rent but would I be smart to entertain idea of fix and flip make some $$$ and reinvest? My long term REI goal is to build slow and steady my porfolio so in 20yrs my current income is coming in passively! Again I'm a newbie and still working specifics out but feel like get very very specific might pigeon hole me but ya get the point I hope.

This house is not on market yet but they are very very much so entertaining the idea. My question is should they choose to except the $15000 which is looking 70%possible guessing what needs or should happen beforeoffer is finalized? Does this have to be posted on the market or is there a way to keep it off the market? Other than conventional loan orther options are? I have good equity in my personal property??? Please help I'm very interested to learn more. If needing more specifics please let me know

Comment · less than a minute ago

We need more info to advise. First off, identify more precisely what the exit value is and we need to know what is the amount of repairs (in dollars, not quantity) needed to obtain the exit value?

It would also be helpful to know what the market rents are for this unit.

John

Consider visiting the local REIA clubs. Find the wholesalers at the meeting link up with one to walk with you through the deal.

Paul

Originally posted by Paul Timmins:
John

Consider visiting the local REIA clubs. Find the wholesalers at the meeting link up with one to walk with you through the deal.

Paul

That is certainly an option Paul, but being new, how would John know if the investor was experienced enough to give valid advice? With all the info, he has plenty of mentors right here to answer this question.

on the assessment and tax portion of the comp for 2012 the market value improved is 65,000. As far as total cost of repair. That is unknown right now. If this progresses we are going to have property inspected before we close even though we are planning on buying as is. I am extremely handy and plan on doing all repairs except electric or foundation if those were to be needed.

I talked to a mortgage lender today and he suggested tht we do a HELOC on our personal property from a credit union.

If the numbers are good enough you could get a hard money loan to cover your purchase and repairs. Once repairs are completed you can then refi with your lender at 75% of appraised value. This is a more advanced technique that most people dont do anymore. I still do this when I buy homes.

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