Foreclosure down payment

[Matt Brooks]

am a complete rookie here and have many questions but let's start with one, I am a contractor who wants to start buying foreclosures, if I buy a foreclosure and have let's say 100k to invest, can I/should I put a 10% down payment and use the rest of my investment for rehab costs and/or other projects or do I need to close fully because it's a short sale/ foreclosure?

Thanks in advance

[Chris Attiliis]

Your question is more about financing and that depends on a number of ways you can go about doing it. Traditional mortgage through a bank (bank owned REO's), private lendor etc. It also depends on the stage of when you buy the property, buying it as a shortsale, or foreclosure before it hits the courts/auctions.

You can borrow money from private lendors or use Hard money or even borrow money from a self directed 401K. They all have their pros and cons, mostly how fast you can get the money and the cost of the loan. Browse through the different topics on BP, read some of the articles and you'll start to realize that your question really all depends on your method of fiancing, intrest rates for your loan, how long you'll be holding the property, etc.

I'm a newbie here as well so I can't really help out too much other than the info above. Good Luck, Matt!!