Im in Detroit and I need to know how I can pull some money out of it immediately. I have the cash to fix it up but it would be great to use other peoples money. Anyone with this experience I would greatly appreciate it. I need windows, Furnace, Plumbing, updated electric, Water heater, Really everything.
Purchased first House at auction for $9500
- Thread starter BlackMike313
- Start date
I been looking for investors, but cats talk a good game when you're just talking about doing something but when it starts to happen they get a little tounge tied.
I been asking people about loans most tell me that I won't be able to get one while the house is in this condition. I think ill just fix it up with the cash I have and then pull some money out when the work is done.
Maybe that will be better because Ill just move in it mortegage free for a while and stack and wait for the next opportunity then pull the money out.
I been asking people about loans most tell me that I won't be able to get one while the house is in this condition. I think ill just fix it up with the cash I have and then pull some money out when the work is done.
Maybe that will be better because Ill just move in it mortegage free for a while and stack and wait for the next opportunity then pull the money out.
Go talk to different mortgage broker. See what products they have to offer than might be right for you. Check out if there is also government help for your hood. Sounds like you might have a house in one of them revitalization zones. Find someone who is fixing up a house around the area and talk to them and see who they use.
do you got any pics of the house?
check with Local RE Investment Association
Place an ad in newspaper something like
I have a home I recently purchased that needs about 30k in repairs after repair vale is 65K will provide 1st position lien in the amount of 38K.
what is the value of the home now and what is it worth after repaired.
go with hard money lender.
Place an ad in newspaper something like
I have a home I recently purchased that needs about 30k in repairs after repair vale is 65K will provide 1st position lien in the amount of 38K.
what is the value of the home now and what is it worth after repaired.
go with hard money lender.
Heres a pic of the house
http://www.hudsonandmarshall.com/pictures/729-419.JPG
I havent had it appraised or anything but the homes in the area are going at 68-70 k.
http://www.hudsonandmarshall.com/pictures/729-419.JPG
I havent had it appraised or anything but the homes in the area are going at 68-70 k.
Was it going into foreclosure? I mean a single family home for 10K that is a fixer upper is not bad as long as the area the house is not runned down.
thax for the pic
for the work you need done
this is my break down
material--8,000 + 3,000 extra
labor-----5,000--10,000
go to a labor pool
if you see a guy
with his own tools
he has skills
so you hire him
pay him 20 hr
and let him
be supervisor
i know a guy
he has built 15 homes like i said
and he has sold all of them
he is siting on 5 homes now
because of the market is slow right now
you can go lowes or homedepot
and buy the stuff
or check you list
and go line you will find everthing you need
i hope that help
sideing--1,500
windows-500.00
Furnace--300.00
Plumbing--300.00
electric--400.00
Water heater--400.00
carpet--1.00-3.00 a sq ft
front door-400.00
back door--400.00
ice box-500.00
stove-450.00
lights-2-400.00
ceiling fan-2-300.00
sink-200.00
vanity with mirror-200.00
wood floor-300.00
dishwasher-600.00
closet door-200.00
Mailboxe
Toilets -1-100.00
STAND UP SHOWER-200.00
TUB--600.00
RANGE HOOD-
BATH ROOM COUNTER-
DECK--
closet---
for the work you need done
this is my break down
material--8,000 + 3,000 extra
labor-----5,000--10,000
go to a labor pool
if you see a guy
with his own tools
he has skills
so you hire him
pay him 20 hr
and let him
be supervisor
i know a guy
he has built 15 homes like i said
and he has sold all of them
he is siting on 5 homes now
because of the market is slow right now
you can go lowes or homedepot
and buy the stuff
or check you list
and go line you will find everthing you need
i hope that help
sideing--1,500
windows-500.00
Furnace--300.00
Plumbing--300.00
electric--400.00
Water heater--400.00
carpet--1.00-3.00 a sq ft
front door-400.00
back door--400.00
ice box-500.00
stove-450.00
lights-2-400.00
ceiling fan-2-300.00
sink-200.00
vanity with mirror-200.00
wood floor-300.00
dishwasher-600.00
closet door-200.00
Mailboxe
Toilets -1-100.00
STAND UP SHOWER-200.00
TUB--600.00
RANGE HOOD-
BATH ROOM COUNTER-
DECK--
closet---
Yep I need all that shit. My budget is 10k plus I got 10k on my home depot card. Hopefully that will be enough. I went to hudsonandmarshall.com and found out about the auction. Everything was free and clear no leins no water bills no back taxes. Im looking into insurance today so It will be insured during the renovation.
i got 10 windows on order cost me $1200 my partner charging me 50 buck per window. I need 7 glass blocks 35 bucks a piece installed. $800 bucks on doors front and side.
Today im getting estimates on plumbing, electric update, and tile for kitchen and bathroom.
Hopefully I can get this shit finished by Christmas.
Anyone in Detroit that got some home improvement skills PM me. Its getting tight up here in the D. Need to cut every corner I can.
i got 10 windows on order cost me $1200 my partner charging me 50 buck per window. I need 7 glass blocks 35 bucks a piece installed. $800 bucks on doors front and side.
Today im getting estimates on plumbing, electric update, and tile for kitchen and bathroom.
Hopefully I can get this shit finished by Christmas.
Anyone in Detroit that got some home improvement skills PM me. Its getting tight up here in the D. Need to cut every corner I can.
like i said the material--8,000
you will be ok for that
now that is good ideal
to have pros come
and tell you what you need
trust and believe
if they tell you it will cost 2,500
you can get it done for 500.00
just find sombody who needs work
fix a HOUSE
its like fix a car
you take it to a shop
they will charge you a arm and a leg
take it to a person
who has skills
it will cost you a finger
good luck homeboy
you will be ok for that
now that is good ideal
to have pros come
and tell you what you need
trust and believe
if they tell you it will cost 2,500
you can get it done for 500.00
just find sombody who needs work
fix a HOUSE
its like fix a car
you take it to a shop
they will charge you a arm and a leg
take it to a person
who has skills
it will cost you a finger
good luck homeboy
Mike,
Congrats of the first property.
Checkout the following site for great advice and contractor references
creonline.com
flippinghomes.com ***You should Live, Eat, Sleep, and Breathe this site***
dealmakerscafe.com
Do the rehab, place renter and refinace when you are finished. DON'T, DON'T, DON'T take all the equity out when you re-finance. Stick to the rule of 70% (or even 65%), which is to maintain 30% (or 35%) equity at all times. This rule keeps you safe in slow markets and allows you to have multiple exit strategies. It allows you to sell at a discount if needed and still make money.
If you don't have the money, then you will need to do HardMoney or a standard re-fi. If the house is in bad shape, you may need to do some work BEFORE trying to cash out re-fi. Why? Because banks don't want to get stuck holding the back on a shitty house if you take the money to Las Vegas instead of putting it into the property. You may also look at doing a construction or rehab loan. What is your credit like?
If comparable properties are worth $70,000, then you should never be into this property or more than $49,000.
That means the most you should re-fi for is $49,000. You have not talked about rental rates. How much are they?
Congrats of the first property.
Checkout the following site for great advice and contractor references
creonline.com
flippinghomes.com ***You should Live, Eat, Sleep, and Breathe this site***
dealmakerscafe.com
Do the rehab, place renter and refinace when you are finished. DON'T, DON'T, DON'T take all the equity out when you re-finance. Stick to the rule of 70% (or even 65%), which is to maintain 30% (or 35%) equity at all times. This rule keeps you safe in slow markets and allows you to have multiple exit strategies. It allows you to sell at a discount if needed and still make money.
If you don't have the money, then you will need to do HardMoney or a standard re-fi. If the house is in bad shape, you may need to do some work BEFORE trying to cash out re-fi. Why? Because banks don't want to get stuck holding the back on a shitty house if you take the money to Las Vegas instead of putting it into the property. You may also look at doing a construction or rehab loan. What is your credit like?
If comparable properties are worth $70,000, then you should never be into this property or more than $49,000.
That means the most you should re-fi for is $49,000. You have not talked about rental rates. How much are they?
Good looking out rental rates are usually about 750 - 850 if section 8 then 900 -1100
This is what I like about this site, Im pretty much burned out on porn. With over 35000 members and countless numbers of lurkers, BGOL got some power.
Im starting the work on the house this weekend. Ill keep this thread updated for anyone else who wants to do something like this. This is my first time so hopefully As I learn I can help others learn from my mistakes (hopefully they wont be many)
Any additional advice will be much appreciated.
Good looking out everyone.
Im starting the work on the house this weekend. Ill keep this thread updated for anyone else who wants to do something like this. This is my first time so hopefully As I learn I can help others learn from my mistakes (hopefully they wont be many)
Any additional advice will be much appreciated.
Good looking out everyone.
In addition to what real1 said, you can get a home equity line of credit for this house. If you own it free and clear get $25,000 H.E.L.O.C. and use the money to fix up the house. If you have some left over you can use the money left in the account to get you another house at auction. Basically its wash rinse and repeat at that point.
SOunds like you only have 2 choices if you want to use OPM
1. Hard money lender
2. Rehab lender
Brookview Financial and Southstar financial
They both require you to have a an LLC, provide a 13 month loan (if you can't rehab and sell or get a traditional mortgage it in less than that you don't need to be in this business), both charge anywhere from 12 - 16% interest plus 3 - 5 points.
Your first deal with them will always be the highest rates. The more deals you do the better you can name your terms.
Good luck
I decided to go ahead with the H.E.L.O.C I can get 20k and pay $160 per month . I need to finish my LLC I have to file my articles of incorporation. I Have my EIN. I contacted Dunns and Bradstreet they are trying to get me to purchase a package. Hopefully I can get all the work done within the next month. then by spring I should be in the position to buy another one.
Mike,
My first question is what did you do to get yourself in position to buy the house? Such as how did you obtain resources, books read, websites visited etc. So that other cats that want to do what you are doing will know where to start.
My first question is what did you do to get yourself in position to buy the house? Such as how did you obtain resources, books read, websites visited etc. So that other cats that want to do what you are doing will know where to start.
I stacked my bread, I overcame the pressure to by alot of shit I wanted. Didnt buy the new car or the rims tax returns was stacked. I paid for all my vehicles cars. Little bullshit cars and a van. I didn't worry about how raggedy my cars were or about getting those new jordans. I figured that when the shit got popping I'd be able to get what I wanted then.
I just listened to alot of people "Talking" about the housing game so much I started talking about it trying to get cats to help fund the shit and do the work but you know how some niggas are all talk. So I figure the best way to do it was to do it myself. I dont really know everything about anything but I decided to just dive in. Im still young so I can bounce back if something unexpected happen.
The best way to get started is to start once you start you have no choice but to finish.
Thanks everyone for the advice. Its amazing what we all can accomplish together. Here at BGOL you never know who is on the other end. Its some brilliant cats out here.
if you want opm dont forget about your credit card. call and ask if they can increase your limit, just dont give them a amount you want see how much they'll give you. take a cash advance and you should have enough. I only recommend this if you are seriously going to make moves soon on your house. either way congrads
FROoOsST
Potential Star
Check out FDI and you will be in the know on what the best thing to do is.
www.fdirep.com/124952
www.fdirep.com/124952
where can a brother find free foreclosures?
Mickey Spillane
Banned
props man. glad to see you bought that instead of bling and rims
I finished my rehab before and after pics coming soon. Im going to sit on it for about 6 months before I pull some money out of it. I need to live rent and mortgage free for awhile. Shits getting tight here in the D.