All Forum Posts by: Cliff Ridge

I am new to investing and need a question cleared up.  I currently do not qualify for a refinance, since I was out of work for awhile and can't find a bank to do a refinance, since they require 2 years of work proof, so I can't cash out to repay a hard or private loan with a refinance.  So could anyone help with what I can do for now, since I can only do Owner Finance and Sub To deals?  How would I get rehab funds if I can't refinance and cash out to pay back the loan ?  Unless there are other creative ways I haven't learned about.  My plan are rentals, unless flips and wholesale are my only options for the next 16 months.  Not my first choice.

I am new to the game, so need a little explaining of something.  Unless I have it wrong, I can only do owner finance or sub to deals until I get two years of employment under my feet to refinance a hard or private loan.  So if I find a good owner or sub to deal, what would be the best way to get rehab funding, since I wouldn't be able refinance at this point cash out to for those funds or pay back a rehab loan.  Am I on the right track or are there other options?

Right now my end game on any property I am looking for is either wholesale or hold and rent.  I don't really have the time at this point to spend flipping.  I wish I did, because I have the skills to do a lot of the work other than elecrical/major plumbing.  Since I am very low on funds this is why I am looking at wholesale, but the long game is renting. I'm not sure if this is a good strategy.  I just wasn't sure if hard lenders work with rent properties like they do for flips.  I know a perfect scenario would be owner finance, but I don't know how often that happens.  Again, I am green right now just trying to learn and absorb before I leap and hopefully not fall.  I'm tired of kicking the tires.

Thanks for the info.  By the way, I hear a lot about using hard lenders for flips.  Can you use a hard lender for a rental investment?  I'm just having a bit of an issue figuring out how the pay back works if the property is held on to.

I found the property on Zillow.

I found a river front property in Pre-Forclosure for $197,500.  Current mortgage is $1000.  I don't know how long or how much equity.  This would be a great AB&B or long term rental.  I am so green, but I see this as an opportunity to possibly take over the mortgage if there is a decent amount of equity.  Not sure if it is at the point I can work with the owner or take over the mortgage with the bank.  I may be off track.  I am reading as much as I can, but don't know if this might be over my head for the first deal.  Maybe a wholesale opportunity?  Comps are difficult since single family homes are so diverse mixed with vacation properties on this river.  We are also going into the winter, so probably not a lot of vacation rentals for awhile.  Please advise.