Real Estate Broker · Belle Plaine, MN · Member since 2020 · 13 posts · 0 votes
I am new to the real estate game. I am possibly going to be getting a lump sum of cash this month which I then want to use to purchase a house. I do know for a fact that the amount of money I will be getting is not enough to purchase a house and make renovations. The question that I have is can I purchase the house and pay for it in full and then turn around and borrow against it so I can make the repairs needed before I then resell the house? I am looking at possibly purchasing a house for about $70,000 and possibly trying to take out a loan against the house for about $30,000 so I can make repairs which would put me all in at $100,000. Another important key factor is that I do not have the greatest credit so I don't know if I would have to go with a hard money lender or an angel investor or what not. Any insight that somebody might have with this would be beneficial. if I'm coming across as sounding stupid right now, I apologize but I really do not know the ins and outs.
You have to ask your lenders that question because their rules are always changing. When I asked that question I was told I could not get a loan until 6 months after I paid cash for a house and the minimum loan banks would do was $50,000 or $60,000, but there are several different types of lenders.
You may have to ask 15 or 20 different banks or mortgage companies. When I purchase my first apartment building I went to 18 different banks before I found one that was interested in working with me. The funny thing is about two months after I purchased the property the bank sold the loan to a bank that did not want to do the loan for me. Banks work in mysterious ways and I don't know why they sold my loans to other banks for different properties 3 times.