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What to do? fix/flip or wholesale

December 6th, 2012 | posted by aplested

I have a great deal at @$50k ARV $120k rehab $15-$30k
should I try hard money, own cash or what?

On 2:02am, December 6th, 2012 Valuni said:

Adam

Valuni's picture

What do you want to do?
Have you done any rehabs? Do you have a good contractor on your team? If you have your own cash, why would you want to get a HML? that would eat into your profit.
If you don't have money to finance the deal, and want to get quick cash and build your cash reserve, then wholesale it.

Wishing you success,

On 2:20am, December 6th, 2012 aplested said:

My first deal

aplested's picture

I have been reading DG for 18 months, now I have found this from a wholesaler and looks like I can't go wrong at $45k or thereabouts
That cleans out my savings so don't know if that is a good plan - what if it needs a furnace for example?
I know a rehabber he has seen the property
the seller is asking for 10% non -refundable deposit

On 17:01pm, December 6th, 2012 aplested said:

where do I find the contracts

aplested's picture

I want to use my contract with a 14 day inspection period and $1000 ernest money - they are asking for a 10% non- refundable deposit

On 5:58am, December 6th, 2012 Valuni said:

have you thought about holding?

Valuni's picture

have you thought about fixing the property, and holding it? Get a renter in it, and then find a bank that will refinance the FMV with no seasoning? You get your funds back, and the tenant pays for the loan Eye-wink

On 18:10pm, January 30th, 2013 lcunningham said:

No Seasoning

Which lenders offer no seasoning requirements?

Latanya Cunningham

On 0:36am, December 7th, 2012 Valuni said:

don't give them a non-refundable deposit

Valuni's picture

and make sure you have your exit clause on the contract (inspection should be to the satisfaction of buyer and/or buyer's partner)

$1000 EM is plenty, I wouldn't give them any more than that...