Getting started with rehabs

[Brian Buckley]

I just want to say what a great wealth of information this website has been and thank anyone who contributes to my post. I am 26 years old and have been interested in real estate for a number of years but have never made any deals. I don't own any real estate as of yet but I am looking to get started investing in the next few months. I have approximately 15k in savings that I can use to invest and my plan is to use HML's for a rehab purchase. With such little savings and no experience in rehanging do you think it's realistic at this point to buy and flip? I have a very steady employment history and good credit (I know it's not much of a factor with HML's). My target area is the NYC and central NJ region. Any input or advice would be greatly appreciated, thanks again.

[Jason Davis]

I am just now bidding on my first house to rehab and flip. I have been a painting contractor and completed several flips for others. We did all cosmetic items and repairs walls etc. Nothing major.

I am 38, a father of 4, have no real assets to use to buy a house to flip.

I am using a HML. The lender has asked nothing about my credit, money in the bank, credit cards or anything.

The HML is more interested in the deal. He looks at the houe and comps. If he likes the deal we will invest in it.

Now with it being your first you need to stand out to the investor. Do your home work on what the house needs. I went room by room and made a detailed list of what is needed.

Carpet, paint, windows, repairs, lights etc etc
I line item everything and then go to Lowes and price it out. I have a detailed list. I have samples of carpet and paint chips with me. I discuss my choises with the lender. They are the experts right? I do not go over line items. I make it so he knows I have a complete list and know what the rehad will cost me. I over estimate and then add in 20% for overages.

So far I have met him at two properties and he has approved the deal and me with a letter to submit my bid.

Stand out, look like you mean business and just get started. Don't be like me and wait til you are 38. Go for it