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Hey all!

I'm looking at buying a rehab project, but unfortunately due to the amount of homes on my credit file (and proximity of rehab project to his existing homes), I wouldn't qualify for another loan (not a 100%)

From what I've read, most hard money folks top out at 70-75%.

Scenario...

380K Loan amount
35K in rehab
ARV is 510-520K(
*Not sure how to factor in hard money points and holding costs (3 mos mortgage), but I figure approx walking away with 30-40K.
(70% of 520K is 364K)

Again, I'm trying to do this at 100% LTV. I have the rehab money, so I wouldn't need to factor that in.

Let me ask you this - with hard money points AND through the roof rates, is there room even to make money with this?

Thanks

Hi Bill

Shoot me off an email and lets talk. I'd like to know what sort of plans you have for 2007 and how I can help to make things happen for you.

Look forward to hearing from you.

Al

Hi all

I'm just getting into rehabbing and from what I've read and heard, doing your own work can take you away from doing what's important - finding deals.

Now I understand the issue of bottom line, but with doing your own deals, are you only working on 1 project at a time?

One at a time I think would be best for beginners like myself. I'm thinking more down the road when I have 3 to 5 going

Thanks,
Al

Hi All!

Any experienced rehabbers out here have a price list on rehab items they care to share?

Thank you!

Al

I'm looking at picking up a few rehab properties and was just going to go with conventional financing.

Good info to know. The part about it not hitting your credit is key. Rolling fixup costs and everything else makes it sound really good.

Thanks Ryan!

Ouch!!

Now why would do this over a conventional loan again??? Bad credit? Faster close?

What if the margin on a deal is slim and the only way to cut costs and up profits is by taking on some of the work - would you advise against that?

Because the property is listed 50K less than what the surrounding comps sold for. It's a divorce sale and the couple just want out.

Is it a situation where because it was LISTED, you wouldn't be able to turn around and try and sell it for more (what the comps sold for)?

All I'm trying to figure out is if I stumbled across these folks before the realtor did, and we agreed to the same below market price, would what I'm talkin about make more sense?

:roll:

Ok, so if you buy a listed property for less than asking price (which is lower than the comps to begin with), can you turn around and sell it for what the comps sold for? (higher than asking price).

And do this w/o fixing it up whatsoever?

My concern is MY buyer looks up what I bought it for and asks why my price is much higher w/o any changes (more their RE agent asking).

Thanks,
Al