I was only familiar with collateralized debt.So when I was lamenting the fact that I could not get money for more homes an entrepreneur friend said, “call the bank and get a signature loan”.Having never heard of this before, I called, and sure enough, IF you have good credit and income, a bank will give you $25-150K just for your signature…to go buy cars, pools and pay for stuff you don’t need.Or, you can use it to buydistressed real-estate.So, here’s where it could go bad.Don’t be stupid.Have your exit strategies.Then execute.My typical deals look like this:HUD/Homepath/VA forclosure wants $41K for a home with an ARV of $65-75K.Let’s assume it needs $10K.I start my bidding ridiculously low, so $24K, but eventually get it for $28.5K.I use “cash” and close fast and get it rehabbed in 2 months…could be faster, but that’s the average.Immediately after I close, I am looking for ways to collateralize the debt…ie REFI.Because right now, I own the home OUTRIGHT, w/ no liens.I do have this other debt not associated with the home and I want to pay it off ASAP before I have to make my first payment.I can 1) use a portfolio lender (typically 80% of receipts, then I retire the rest of the loan w/ my cash).2) Wait 6 months and use traditional financing where I have the possibility to getting all of my money out of the deal since they go off of appraisals, not receipts, typically 75% LTV.While I wait 6 months, my payments on $35K are around $500/mo.Home rents for $850, so I can do this and still pay the bills.3) flip the property to a new home owner and make 7-10K after expenses or 4) do nothing and pay the house off in 7 yrs w/ the 9% signature loan.I hear of people using hard money and the expenses associated, but for the smaller deals like these, IF you have good credit, they don’t make sense.Thoughts?

LIke I said, we target certain select neighborhoods and things here are moving fast when priced right.

Deferred maintenance is at 4,000 a door for 80,000.Market rent is 550 a door but you price at 500 to rent up fast and get the best tenants from the applications.Purchase price is let's say 10,000 a door for 200,000.200,000 plus 80,000 and let's say closing costs on buy and sell side is 40,000 so 320,000 all in.

Storm came up fast I guess, full roof ripped all at once, no huge tarps on site.

That can add up fast for a property you might not get.

As I said, a track record, two years tax records is a standard guideline, not a hard and fast rule, some lender may want to see 3 years if it looks weak.

I have done a few of these myself - its inexpensive fast, and efficient.So- in theory - you may have a plan.

Here are some key words to search for using Google: I buy houses PhoenixWe buy houses PhoenixSell my house fast PhoenixCash for my home PhoenixReal Estate Investment Company PhoenixCourthouse Auctions- Network with the investors at courthouse auctions.

If you register on his monthly mentorship online training, he releases bits and pieces to you so you don't try to learn everything too fast.  

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