All Forum Posts by: Matt Thomas

Thank you both for the information. I have no experience with hard money, so I have a little fear of the unknown. My biggest concern is that the cost of financing and short terms make it likely that they HML will end up with the property if everything doesn't go perfectly. Also, that the points and interest rates cut way into the profits. Is this a reality or is that just a worst case scenario?

Thanks for the responses/introductions.  

Jonathan, I'm actually out that way a lot, so I will try to check it out.

Hello,

My name is Matt.  I'm from Central Massachusetts and I am new to the forum, so I just wanted to introduce myself.  I haven't done any investment deals yet, but my first house was technically a fix and flip that I just so happened to live in for a few years.  It turned out pretty well and now that I am a little older, I am trying to pursue an interest that I have always had in real estate by attempting to do another deal and hopefully building an investment portfolio.  I look forward to meeting new people on here and hope to learn from the collective experience of the members.

Thank you,

Matt

Hello,

I'm new to the forum and was looking for some advice about how to approach my first (hopefully of many) flip.  I live in Massachusetts, which is where the property is located.  It was owned by a family member, who has passed away.  The estate has not been probated and the house is in pre-foreclosure.  It has been vacant for about a year and is pretty distressed to say the least.  I can acquire the house from the estate, but I am not sure the best way to approach financing.  The house would probably be worth around $230k when finished.  About $65,000 is due on the note and it would take about $75,000-$100,000 to fully gut and rehab.  My goal would be to sell the house afterwards.

I'm just wondering where to start on financing?  Will the bank holding the current note generally finance something like this?  Is this something that I can approach another local bank with to get a rehab loan on or do I need to go to a specialized lender?  I do have some cash for a down payment and also equity in my own home, but I'd like to avoid using that, if I can.  I'm just a newbie looking for a nudge in the right directio, so any help would be greatly appreciated.