All Forum Posts by: Maddy Lakshmanan

Hi Maddy! I haven't done any rehab loans lately, but in general, yes they are more expensive.  On top of an investment property having a higher rate and down payment requirement, a conventional construction loan will come with more points and fees due to risk.  The lender has to pay for inspections, title updates, loan servicing, etc that a typical loan doesn't have, and these are of course passed on to you. If you want to go with private money, the rate will likely be even higher but you might have less fees and restrictions on using the funds.  You would need to put some feelers out to some hard money lenders and see what they would be willing to give you based on your plan for improvements.  

You could also consider finding a property that is just dated but doesn't have anything that HAS to be done.  Then you can tackle a few of the most desired upgrades first, as your budget allows, and add more upgrades between tenants.

In my experience all wholesalers have slightly different practices when it comes to their costs.

I have a few people I can connect you with, feel free to DM me or call/text anytime!

@Maddy Lakshmanan a double closing generally isn’t required. One could assign their contract to their end buyer.  But if you do, then generally you would pay for your side of the closing costs, when you buy the property.

It’s easiest to find a good referral for a title company or closing attorney from other local Facebook groups. Simply ask “who is an investor or wholesale friends closing company” and you’ll have a lot of ppl reply with their favorites and why.  

@Maddy Lakshmanan

what you are proposing will not work.

you can't just 'refi' and pay the HML back unless you've added significant value to the property.

otherwise you'll just be out a bunch of cash.

do the math and you'll see.

If your numbers make sense with those terms why not. You make money when you buy!