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Category: Need Advice Current Grade: B+ Total Views: 364 Member Comments: 2 |
Posted on: 11/18/2008 Posted by: Romeholding Blog Points: 58 View all blogs >> |
Hey everybody ;
I need your help on this. I'm a new investor and looking to get assistance on a property . I had contacted a investor in my area ;who purchase a new bulit property.Here is the information on it 3/2/2 ;1700 sq ft living ; asking $55,000 . Can finance the deal with 10% down @9% int balloon in 12 months. It needs $20K in repairs and he purchase it for $50k back in July. Its in a great area with a lot of upside . The values in the area by my understanding is in the range of $118k to $125k. But with the market being what it is everybody is using caution. My question is what should i do here??? Wholesale this property to other investor and how??? Or should i get a hard money lender which i sent the information too and just do the rehab my self(e.i hire out the work)????? 
Thank you for the advice
If you can verify the numbers, you have a options. If you have the cash to do the deal yourself; buy it, fix it, and list it at a reasonable price. If you don't have the money to do the deal yourself; put it under contract, contact local wholesalers, and offer to split the profits on the deal for whatever they can sell it for above your contract price. Or, if it is an area with high enough rental rates and good long-term appreciation potential; get short term financing to do the rehab, rent it out, then refinance it to a convetional 25-30 year mortgage, and collect positive cashflow year after year until you decide the market value on it is enough that you want to sell it.
Good luck!