rehab question

[Aaron Cheatham]

Hello . Thanks in advance for the insight on this situation.

Here's my situation !!!

want to dive into real estate investment. Ive always been a businessmam. I want to start to rehab houses along with wholesaling houses.

Here's my question. If i find a nice reo property or owner sale property that I can rehab how do I go about this. I don't have the cash to buy properties and rehab. My credit isn't the best, I was making 4k a week fresh out of high school with a company I owned and operated. Long story story short supply went high demand went low. I racked up a lot of bills that I.just couldn't continue to pay. I also wasn't educated enough at that time to open a llc to cover myself. My credit isnt the worse but it isn't the best either.

I've been reading about hard money lenders who lend you money to rehab houses and you pay them back monthly. I also spoke with my real estate attorney and he mentioned somwthing about a construction loan. Can someone give mea little insight on hard money lenders, what so I need to qualify, what are there terms?

Also let's fast forward after I have found a lender. Do I simply find a construction guy to do the work(although I plan on doing a lot myself) and present me with a invoice when the work is done and I forward that to the lender and I am reembruised for the funds? I'm a bit confused.

Also for example is I bought property at 10k with 15k repair costs and a 50k arv how do I cash out and make money off rehabing ? I'm not onto renting and cashflow and tenants(not yet atleast) .

Thank you again in advance for the help. I'm ready to make investing my full time job.

Sorry for any typos. I'm typing on.a evo4g. The spell check kills me everytime. LOL

Aaron

[John Glover]

From your questioning there is a ton of information you are lacking and you need to learn it before attempting any rehabs.
Not being fully aware of all your costs and risk can lead to financial disaster and you don't want that.

I would suggest you learn to wholesale houses and build up a nest egg for a rehab flip. While wholesaling you can learn and study what it takes to do successful rehabs.

Don't believe the hype you see on TV about flipping houses, it's a show and many things are edited out.