Need Real Estate Investing Advice!!

There is this wondeful program called NACA. They help to find if you have a predatory lender. The website is www.naca.com

G.,

It is always hard to get back on your feet, unfortunately, businesses aren't sympathetic to those going thru tough times! Since it seems they aren't wanting to give you a loan for the "fixer upper" is it possible to refinance something you already have a loan on to get a little bit of working capital to do some minor repairs? This might make the house either more desirable as a "fixer upper" to potential buyers or it might make lenders see that you are responsible and serious about getting this place fixed up enough to sell for a profit. Another option might be to find a private investor that would be willing to loan you the money for a portion of the profit when the house sells. That option might be harder to accomplish. If all else fails, go talk to the Credit Unions and banks in person with a business plan showing them how you plan to have the property completed in so many days, a realtors appraisal of what it would be worth after your improvements would go a long way, and make your sales pitch! You might want to check the laws on insurance companies refusing to insure your property, is that legal?

Hope you get your feet back on the ground! Good luck!

N.

I agree as the other person said, We have done the same, and got a construction loan on the property. This gave us working capital while we fixed it up, and didn't have to make payments for like 6 months. I believe that is the longest you can go on one.We first did the repairs that our insurance company required for it to be insurable. I also don't believe it has to be insured during the contruction loan.(I'm not sure of that though). Hope that helps, I know how tough times are right now. You may consider renting it out before selling until you can get the work done.

Good luck.

G.,

Where do you live? Where is the rehab property? Have you tried applying for a small business loan/grant for single Moms?

I am a Real Estate Broker and would be glad to offer some advise - but would need to gather some more information from you.

The real estate company I work for specializes in Buy & Rehab, REOs and Forclosures, etc. We started the company when we had nothing.

If you are in the local area - we might even be able to help you with it.

Please feel free to contact me - S. ###-###-#### 1-877-233-1809 TF

Hi G.,

My name is M. Bellis and I am a real estate agent with Reece and Nichols ###-###-####. I have personally bought two fixer uppers and have made them homes for two years so I don't have to pay capital gains because of the profit. My recommendation is to have the property appraised. I contacted Discover Home Loans online. It's free and they send someone out and you can also get the loan through them. They will send you a letter when the appraisal is done and in the letter it has an address to mail a request for a copy of the appraisal. Do all of that and then if you got a great deal on the home there should be equity in the home. For example if you bought the home for $100K and it is worth $150K without putting too much work into it you can turn in the appraisal to your mortgage company and get the PMI taken off the loan. All of these options should help and save you money. Please call or email me if you have any questions and good luck! ____@____.com

Hi G.,

My husband and I invest in real estate and have been blessed through our involvement in real estate. One option that might work well for your situation is to seek out a hard money lender that can loan you the money for your fixer upper. Their criteria is different than the traditional mortgage lender. If you'd like to talk more about it, let me know.

My husband has been investing in real estate for almost six years and he could probably help you. I already talked to him about your situation and he would be happy to answer any of your questions. Give him a call at ###-###-####. I hope this helps. Good luck.

G.,
I know little about selling houses, try selling first, then auction maybe???? I don't know anything about investing, but my mom recently asked someone about auctioning her old home which needs a lot of repairs, and she might do that.??? Just a thought.
Darlene e.

I am not sure as to the extent of the repairs, but you may want to rent it out until the market gets better. Also, I know you might be able to take out an equity loan on the mortgage but this takes away from some of your profits. You may also look into WeBuyUglyHouses.com...not sure if you will make money from this, but if you want to get out from under it maybe they can help.

good luck

Hi G.,

What we do is get a construction loan for a few months while we're fixing it up. These are usaully based on the value of the home after the repairs are completed and are interest only. You can also get temporary insurance from many insurance companies - it's pricey, though. Ours is about $1000 for 3 months.

T.

How about looking into a sort of partnership? You could find someone that is very handy and knows how to do many of the jobs needing done and rent the place to him in exchange for the work he would be doing. I know it doesn't help a lot with coming up with the money needed for lots of the repairs. So another route would be to owner finance on a contract that requires a balloon payment after a certain perod of time. Say you could give them 2-3 years to come up with the mortgage. Is the property completely unliveable?

Suzi

I asked my husband about this because he is a brilliant entrepreneur...he said you must find a way to do the "seat labor" your self, that may mean living extremely simply until it is finished, even if it means living out of the fixer-upper you are working on while temporarily renting out your home. Sell whatever things you can and spend that money on fixing the problem areas of the investment property. Hope this helps-best of luck to you!

Hi there....I am R.. You approached the fixer upper thing a little backwards but if you will be patient I think you can pull it out of the fire. First assess what needs done and determine what you can do yourself. I researched how to's (with exception of electric and plumbing) on internet and slowly fixed things and paid for what I could along the way. Clean up site really well.....beg for starts of plants if it needs landscaping....most gardeners love to share starts....first looks are important tools. I have tiled, sheetrocked, painted and put up wallpaper. If the cabinets are in good shape meaning no holes. Sand and restain using a gel with finish. Another way is to paint a trendy yet neutral color. I found materials at really good places at wholesale outlets. If the tub or sinks are enamel and crappy you can buy a paint kit to redo those too. I redid a 1920's house and it was mainly done by me and my DH who taught himset to lay tile and laminate floors. Laying tile is easy after you get down the cuting. I will say a prayer that you find help and some answers.

Why didn't you do all this planning in the first place now it sound's like you'll be stuck in a rut for a while.Did you not know how your credit was? Where did you get the money to buy the house?I would have made sure everything was in place before buying a fixer upper especially with kid's still at home.Not saying you won't be able to do this but sound's like it' going to be a long haul.Good Luck

What county are you in? There are grants in the various counties that are for low income families that'll help them to get the assistance they need to get the things done on their homes. Let me know what county you're in and I can possibly help you.

-J. M.