OfflineMy name is Todd Lombardi and I live in a small town in upstate NY called Newark. I'm really new to real estate and I have some questions about where to start.
The only experience I have is that a couple years ago I bought a Hud forclosure, on my own with no guidance at all. I fixed it up myself and after all the hard work, and too much money, I ended up loosing in the end. I just didn't look at the numbers close enough. Now, after reading a couple of Dean's books I feel like I have some guidance.
So here's the situation. My wife and I refinanced our home and I've got about $10-$15,000 I can use to get started. It's not much,I know. But I really think we can do something here. Especially after reading about all these no money techniques!
We are about to look at a VA forclosure listed at $21,900. In the listing it says cash only offers. It's a single family, 4 bedroom, 1 1/2 bath that is 1522 square ft. I walked around the house and from the looks of it, it could make a beautiful home. But it needs quite a bit of work. It definately needs a new roof. And by the look of it, someone started to do some rehabbing on the inside. But I guess the husband died and the wife must have lost it.
So I guess I'm wondering how I should approach this. I really don't have the money to buy it, let alone rehab it. Should I be looking elsewhere?
PLEASE HELP!
Help!!
Posted on: Tue, 02/08/2011 - 20:37
Help!!
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- by ToddDawnLom
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have them finance, you fix it up, split profits at sale
Partnership born
So have the buyer finance it, I fix it up, and split the profit with the buyer?
Todd, you got it. Otherwise, how is your credit score? Which bank owns the foreclosure? You could talk to the bank or local realtor and see if they will let you finance it yourself.
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
that is a great deal if it still has a va loan and you are a vet you could assume the loan with your va bennifits or strike a deal with an investor
Well, my credit isn't the greatest, 640 or so, and I am currently laid off from my job. Just a temporary thing. I'm in construction and it's a little slow. So right now I have a ton of time to get this up and running.
So how would I go about making a proposal like that to the buyer? You know, for me to fix it up and split profits?
I would start with determining how much it is going to cost to fix the home up. After that determine the fair market value and rental value. Once you have those numbers, you could talk to your local lender that helped with your refinance. He may be able to lend on the property or help you find hard money lenders. It's only a good deal if the numbers work, no matter what banks are willing to do.
Todd welcome to the DG site and guess what your in luck because I'm just up here in Rochester, and I have been renovating and rehabbing properties for 30 years. So before you make any mistakes run them by me and I will be glad to try and keep you out of trouble. At the bottom you can click on my web link and there you will find all my info and #.
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
Perfect! So you have good connections, such as a general contractor, plumbers, electricians, etc. They could give you good estimates on what it would cost to fix up the house! Rob is right- that is the first number you will need (total for rehab.)
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
If you are in a position to purchase and the #'s are correct, if when you buy it, i'll add a little extra to what you paid for it and take it off your hands
Speak w James; have him do your estimates and if its good, you'll have two sales in one day
You really are in luck. Two pros who want to help you make your first deal. Go get 'em! peace,
Dana w/ Crossroads Solutions LLC
http://www.DanaLeigh209.com
http://www.DanaLeigh209.net
http://www.ULostThis.com
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I am direct to the VP of a $100 million dollar open-ended debt and equity fund which actively writes checks to fund businesses with an EBITDA of at least $1 million a year. We fund also have access to up to $500,000,000 for the purchase of distressed real estate, specially commercial $7,500,000 and up.