Best time of year to buy - Rehabbing in extreme climate cities

[Ardie Mansouri]

Hi everyone!  

I've been putting together my strategy for starting up my REI career and thought you all might have some input on a few points that I had questions on.

Just like most people, I am eager to start out on my first deal as soon as possible. Unfortunately though, I am fairly limited on my start up capital and am currently in saving mode for that first deal. In short, for my first move I plan on using an HML to fund the acquisition and rehab costs of a relatively low cost property. I have called around my area and found that the general terms seem to be 65% ARV, 3 points up front, 3 points back end, 12% annual interest, 6 months loan term, and another 3 points if loan needs to be extended another 6 months.

This is where my question to you all comes in.  As I said I am working with limited startup capital to begin with, and it is critical that a deal like this would be executed within the first 6 months of the loan term to avoid these extra points.  Working under the assumption that a newbie like myself could execute a rehab in 6 months (comments on this are welcome as well), is there a certain time of year that lends itself to purchasing properties for rehabs?  It is important to note that I live in St. Louis, MO which has been known to experience fairly harsh winters.  I have heard that selling a house in the winter time is a bad idea, but for whatever reason I had trouble finding any discussion on the topic anywhere on BP.  

On the subject of financing, I have read that I should also look into a portfolio lender through a local bank.  At this point though, I really just haven't been able to look too far into the details. Are these similar to HMLs?

Thanks BP! I've learned so much from all of you already, can't thank you enough for introducing me to REI.

-Ardie