Lenders, Rehab, Buying Process for Rentals !

[Sieanna Ariel]

Can someone share how the process goes after finding a deal that you are ready to buy. I know that no one experience is the same, yet I want to try to generalize what can be expected with real estate transactions.

1)How did the process go finding a lender? Was this done before or after contacting and beginning the transaction with the seller?

2)How did the transaction process work?

3)Did lenders supply a loan for rehab to take place or was this something saved for?

4)How long until the loan from lenders are allowed to be utilized?

[Kenneth Garrett]

@Sieanna Ariel

Start talking to lenders to see who you want to work with and to confirm what you qualify for. The only way you can borrow money to purchase and rehab is to use a a 203K lender. The second option is to use a private lender or hard money lender. I prefer private lenders. If your using the BRRRR strategy you will need to loans. I do the buy side while the other on the refi side.

I use private lenders, they will fund the purchase and rehab.  I pay them back at the refi.  No monthly payments.  It took a while to earn there trust to get this type of lending.  My first project, they paid the purchase while I paid for the rehab.  After that they funded 100%.  All funds were received at closing on the buy side.  Funds were sent to the title company from the lender and a check is cut back to me for the rehab.  It is all done at the closing.