All Forum Posts by: Laurie F.

@Laurie F. there could be potential snags to the plan...but we need to know what the actual plan is.

So, what is the plan?

Quote from @Nathan Gesner:

Quote from @Laurie F.:

1. Are you working with a real estate agent? Their fees are paid by the Seller, so it's essentially free for you and they should be the one answering these questions.

2. You don't say what State you are looking in, but all States allow you to terminate the contract and get your earnest money deposit back, as long as you follow the contract. The clause usually says you have the right to conduct inspections and then you can cancel the contract or negotiate based on what you discover during the inspection(s). You can also cancel based on lack of financing, finding something in the Title search, or other situations.

Again, you should be speaking with your agent to get more specifics on this. If you're not using an agent, I think you're making a big mistake.

Laurie, congrats on throwing your hat in. the ring.  There definitely is a learning curve and there is definitely risk in this for those without the knowledge.

You should definitely check in with a lender so you can what kind of terms they'd offer you.  Some won't do a fix n flip with a 0, some will.  Even the ones who do, you are looking at 12% - 12.5% for the rate and maybe up to 3 points.  

If you have a 680 credit and 50k, you could find someone.  You may not kill it on the first but you'll be a 0 for experience no more -that's key.

Managing the contracting piece can be tricky.  People don't realize that after you laid out the 20% for the purchase, paid the fees and closing costs, paid title and paid insurance and now the contractor you hired wants 25% of the 80k rehab budget upfront to buy materials and pay his workers.  That's 20k, and you can't take draws until work is COMPLETE.  So you need to front the 20k to the contractor and then start applying for draws as he finishes projects in the house.  Then when the 20k runs out he'll want more and you may have to float that 20k out again.  That will go on until the work is done and on the final draw you're made whole for the money you floated for the work.

There's help out there Laurie!  Alot of nice, smart people here.

You typically look at the house yourself first. If it appears to meet your requirements, then you get it under contract. Then you'll send the inspector in to verify it is what you think it is and you'll talk to the lender to wrap up financing.