Hi everyone,
Getting started is really overwhelming. I am trying to move out of the analysis paralysis phase and want to get my feet wet and take that leap. I am currently looking at two possibilities one a foreclosed SF home and the other a duplex with renters occupying the residence. I want to flip both but may end up keeping the duplex if I am able to get a lender to work with. The landlord we used to rent from (currently own) has a property that he is willing to sell with current renters, this one cost a bit more than the other two.
I tried to contact a few of the HML and private lenders here on BP recommended list and one, in particular, is willing to work with me but I have a few questions that I hope I can get answered.
1. The HML wants me to pay them $250 for pre-approval letter as a way to hold on to our business. I would get the money back as a credit. Plus, the credit score must be at least 600. Does this sound right?
2. A first-time investor with limit resources to fund the remaining balance of the loan. HML require 10% down and %10 down for rehab with 12% interest.
What options available for a new investor to acquire the additional funding? Properties are located in PA and I was told the seller can only assist with up to two percent.
3. I was told that I must have an LLC and if I am going to use a borrow/partner they must be a member of the organization. Also, if my credit score is lower than the other member/partner that other member must be president. Does this sound right?
I have been researching real estate investing for a while, on and off, and was able to purchase our first home in Dec. 2017 and want to actually jump into the investing aspect of things.
Best regards,
Nick
