All Forum Posts by: David Wright

To add to the good information you already received, if you can qualify for a  traditional bank or even credit union loan great, because your rate, fees, and terms will most likely be much better than a hard money loan.  However, the questions you must ask yourself are:

1.  How long will a traditional bank and credit union take to close the loan? If they take too long you could lose the contract.

2.  How valuable is your time?  You can always find ways to increase your income, but not your time.  Traditional banks and credit unions typically require a lot more documentation that a hard money lender does not.  Massive loan docs take time. 

These are just pros and cons for you to consider.  I hope this helps.  Much success!

I would add to the good advise you have received thus far, if you do decide to purchase for cash at an auction be very careful of the purchase price.. Many direct and hard money lenders have a minimum loan amount and some will not lend if the rehab cost is greater than the purchase price. So be careful.

I have a great idea....ask a real estate attorney who is also an investor that question, they will know better than anyone who is not a real estate attorney.  And you will be able most likely to find a real estate attorney in that area who will give you that answer for free.  

I would check the recent sales (back 90 days) of cash buyers who purchased SFR in Detroit. Pick out zip codes in several areas. You can ask a realtor to pull this information from from their MLS. Than compare and see for yourself. If sales are being made that's a good sign, if not I would question if it is a good zip code to invest in.

Its all about the market, location, and area.  In some zip codes they have peaked and in some zip codes they have not peaked.  It really depends on the market.

Hey Todd please let me know if you get the 100% financing.  Thanks

Good point Dennis and idea

It all depends on the specific area and location and sometimes even the zip code to determine if its a seller or buyers market.   Many markets are different.

There are cash buyers who look to purchase fire damaged properties.  So a great exit strategy would be to post on sites like Craigslist stating that you have a fire damaged property.  You may be surprised how many calls you get.  

I think it is not a bad idea Steven as long as you make sure you know the condition of the property, but that is with any property.  Be sure to check the local laws of the tax delinquents for your county you are wholesaling in because there are different time periods when the owner has a right to purchase the property back.  But I an not an expert on tax delinquent properties.