homes

[lceah]

bla

[Rick B.]

if you want fixer upper help, i can do that. I took two years construction/woodshop class in high school.

 

buy a house or condo and rent it out. make the regular mortgage payments with your money every month and use the rent money to pay directly towards the principle of the loan to pay it off really fast. Then after a few years, turn around and sell it.

 

or become a loan officer. they make GOOD money.

[Ben.]

Just remember.

 

If you go to do anything major, get your permits pulled.

 

And make sure whatever you buy is CLOSE to being up to code, otherwise an inspector will PICK IT APART.

[Humphries]

if you do flip houses.. dont decorate with what YOU would like.. think about what others would like in their house.

 

neutral colors

 

dont go too expensive on appliances and furniture.

 

i could flip a house and make 100,000 dollars after spending only 20,000.

 

but i dont have the money

[SIR_VTEC]

Haha this is what i do for a living, im a loan officer...

 

So you want to be an investor ...well heres the break down, bascially you can find a house for really cheap, houses that are auctioned, foreclosed upon, or sheriff's sales. Alot of investor buy homes for around 30-60k and fix them up and end up selling them for about 100-130k, because it depends how well it looks upon how the appraiser looks at it, plus you need to have a detailed and proof of list of repairs. Bascially a break down of how much you spent and what was done.

 

There are programs that allow a buyer to recieve a loan based on the "after repair" value, in other words you give them (the appraiser) a break down of how much you are going to spend and they can determine a new value and the existing value. The program will allow you to pull a maximum of about 85% of the new repaired value, therefore no money spent out of your pocket your pulling equity out of the house based on the new value...so thats basically what tons and tons of investors are doing right now...so yea any more questions you can PM me or call me and i'll PM my number and explain it to you a little more detailed.

[SIR_VTEC]

Yea no problem, yes actually there are houses in Cali that are under about 65k, I've done fianancing for a few people there buying investment homes...but yea like i said any questions feel free to ask ^_^

[Xeryon]

if you do flip houses.. dont decorate with what YOU would like.. think about what others would like in their house.

 

neutral colors

 

dont go too expensive on appliances and furniture.

 

i could flip a house and make 100,000 dollars after spending only 20,000.

 

but i dont have the money

 

This is the storey of everyones life. If someone actually has the motivation to do something then the money will be there. I hate when people point to lack of funds as the reason they don't do something. Nothing like a scape goat to make yourself look/feel better while you sit lazily around and watch TV or play games or read HF.

 

What SIR_VTEC said...is a rough way to finance cause your banking on the value you hope to receive. If you don't, because the quality of work was bad or the market takes a downturn then these loans can really hurt you. Don't foget the rehab loans are often much higher interest then typical 30yr.

 

Currently I live in the house I bought on forclosure. We arn't buying houses to "flip" like most people think. We buy and live in for 3 or so years and then sell it for a heafty profit after doing numerous repairs and remodels ourselves. If you have enough money to put down on the house then many of the inspections otherwise required were waived in my case. When I moved in it was November 15th. We had no hot water, no fridge, no stove and no furnace. I fondly remember the day I got the water heater turned back on! No more cold showers in a 50 degree house! Call a realtor, any realtor, and ask for the specialist on forclosed homes. Most regional offices have 2-3 people that only do forclosures. We looked at 20-30 before we bought the one we did. We bought it for 80k, (55%) of what it had sold for retail 5 years earlier. We dropped 25K on the house already in the last 1.5 years, but the house is now valued at 150k and we haven't done any visable redecorating or remodeling aside from roof, windows, furnace and replumbing the house from top to bottom and other various previously neglected maintence repairs. Another year or so of work and another 10-15k and we should be around 200K sale value.

[SIR_VTEC]

x3772: You have your head on right man, i would love to do financing for you man heheh, well thats what my brother does, but his way is build spec homes and rent them out and then sell or simpply build cheap and sell high...thats basic real estate buy low sell high....but yea man you pretty much know what your talking about and your a consumer...most consumers dont have a freaking clue

[Xeryon]

If you guys would like I can post pics of my projects. Just today I built most of a deck. Next week I re texture the walls in the hallway. Week after that I dig new downspout trenches to keep the water away from the house, next week I rebuild the basement steps......(endlessly coninues)

 

By the way lceah, be prepared to have no social life, no vacations and no romance after you buy the fixer upper. You will spend every last second and penny putting back into the house.

[SIR_VTEC]

I can post pics of my first project house...it was a 4-family...and was horrible....but after things were fixed up it sold for like 210,000....and i bought the place for 85k. So i'll show you guys what i did...and it was wayyyyy tooo time consuming. But i learned alot of stuff such as plumbing and laying tile lol.

 

side note off subject: iceah i sent you a friend request on good ol myspacer lol

[SIR_VTEC]

LoL well now those are pics i would of love to seen....lol j.k

 

well if your deleting it no worries

[Xeryon]

I haven't injured myself severely yet, but I do have a tendency to break things that I am not currently working on. Which of course means long hours still soldering copper plumbing at 3am some days, or applying plaster to a hole while I eat my breakfast cause I fell asleep in the room I was working on.

 

And in response to an earlier comment of yours MR. VTEC, I would love to have a conversation with you about special financing on rehab loans, preferably they type with 90 days delayed initial payments . I find myself growing bored of working from home every day selling things on eBay and I yearn to construct. I also have a contractor friend who was just laid off by the volume builder he has been working for for the last 3 years too ....

[Humphries]

the reason i could make that much money and im not is because im 18 and dont have any income.. i cannot get a loan.

 

i do construction so i wouldnt pay laborers besides plumbers and a ceptic tank flush.

 

im not making excuses about anything..

[Xeryon]

btw, plumbing is crazy easy Was the first home repair I learned . via internet and trial and error I learned and I redid my entire house from galvanized to copper over a couple weeks. soldering copper pipes together is far more tedious then it is hard. Where I live I can't retrofit pvc for water supply lines :( but you can do all the waste lines in pvc Its too bad I can't do the supply lines cause on a scale of 1 to 10 copper plumbing is about a 5 or 6 in difficulty, where pvc plumbing is a 1, a hacksaw, one bottle of primer, one bottle of glue, one extreme buzz and about 2 mins holding each seam and thats it.

 

If you have da skills there will be a lender that will give you the money. 18 is old enough to legally own real estate and be enabled to manage the property, and I am sure SIR_VTEC will correct me if I am wrong, but as long as you meet normal qualifications you can get a loan.

[SIR_VTEC]

I haven't injured myself severely yet, but I do have a tendency to break things that I am not currently working on. Which of course means long hours still soldering copper plumbing at 3am some days, or applying plaster to a hole while I eat my breakfast cause I fell asleep in the room I was working on.

 

And in response to an earlier comment of yours MR. VTEC, I would love to have a conversation with you about special financing on rehab loans, preferably they type with 90 days delayed initial payments . I find myself growing bored of working from home every day selling things on eBay and I yearn to construct. I also have a contractor friend who was just laid off by the volume builder he has been working for for the last 3 years too ....

 

 

Yea no problem man, just send me a PM anytime.

 

 

As far as acquiring a loan....acquiring the loan is not many borrowers problem, i've done financing for a 18 year old before and he purchased a rental to rehab and sell off, the problem that many have is do you qualify credit score wise, everything in this world is credit score driven...if your score doesnt meet that programs score, there are others that will and higher risks are involved with the lender so therefore the terms are a little more harsh, such as prepayments added to the loan, and or points are involved to charge you as a customer.

[TLontheDL]

i wish i understood what you guys are talking about. you guys are using real estate terms =o( break it down for a person who does not have a clue, please?

[Humphries]

My credit score is 300... like anyone who hasnt used credit in their life.

 

unless i build it up and have at least a 500-600 credit score, i will not get the loan i need to do this.

 

i will wait for my brother so i can just help him and make about 10% of whatever we make off of the house he will sell.

 

he bought a house a year ago and has already had the value go up by 30k.

 

we is good.

[SIR_VTEC]

i wish i understood what you guys are talking about. you guys are using real estate terms =o( break it down for a person who does not have a clue, please?

 

 

Well basicially its like this:

 

You buy a house that either has been foreclosed upon(the bank has taken over since the person that owned it prior couldnt make payments), listed in a sheriffs sale (basically a private disclosed silent auction), or just really bad shaped houses (crack houses, fire/ water damaged houses....stuff like that)...and you pull out a re-hab loan (a loan that allows you to give them a summary of repairs your going to complete and an estimate of costs)...from there you get an appraisal (I will punch you if you dont know what this is-basically how much is it worth) and that appraisal will let you know how much its worth before and after the repairs so it will give you two values. That rehab loan (if you are approved) will allow you to pull up to 85% of equity on the "new" value after repairs, to allow you to complete the list of repairs you had given them. Some lenders set up an escrow account (an escrow account simply is a allowance, that you take draws out based on how much you need per the contractor or receipts that are drawn up for costs) and you basically keep making draws but showing proof as well that you will complete the repairs and not just withdraw funds from the escrow - then there are alot of lenders that dont require an escrow account to be set up, and they will just cut you a check for the amount of equity that was pulled at closing

 

Hopefully thats simply put..if not i could clarify more

[Humphries]

im not worried about getting rich.. i just dont want to have a credit card until i get a job and am able to pay it if i do use it.

 

im going into the navy this winter so i will be making a crapload of money coming soon.

 

 

good luck with whatever you do... im going to play video games now.

[Humphries]

im gonna go make the navy rich.

 

my brother said he'll be bitter (he's in the navy too) because i'll be making money a lot faster than he did. and a lot more money

[Humphries]

thanks for worrying but i'll be doing computer stuff... they dont need me over in iraqistan or whatever.

[SIR_VTEC]

hahah good ol iraqistan lol...god i love improv bush

[Xeryon]

for TLontheDL the even more simplified explanation:

 

Buy a house at wholesale or junkyard equivalent, get the bank to lend you money based on what the house should sell for when you fix it up, fix the house up with the borrowed money, sell it, pay off the loan, pocket the profit. Rinse. Repeat.

[SIR_VTEC]

yea pretty much x3772