OK, so I want to start rehabbing real estate, and have a plan... but how does one finance this?

I am a student (university) who is getting ready to finish and move on with his life. I have a wife and child and I%26#039;d say I%26#039;m fairly competent with a hammer and saw (a figure of speech). I have a collection of trusted contractors and I have several 3-ring binders (at least 10) with a plethora of plans and design products/ideas that I have amassed throughout the years. These range anywhere from counter tops, to drywall, to floor plans. The only thing I have left to learn is how to finance such an expedition. Obviously, I do not have a lot of money right now, given that I am a college student.

I looked at http://geltfinancial.com/loanrehab.asp

Is this place reliable? What options do I have?

PS: I would like this to be short-term investments (e.g., 1mo. or less--and yes, I can do it in less than a month).

OK, so I want to start rehabbing real estate, and have a plan... but how does one finance this?

There are several ways to accomplish what you are asking.

If your credit is decent, you can get a %26quot;construction loan%26quot; provided you got the deal at a low enough price. Typically, you will need to buy a house for less than 70% of the after repaired value.

If you buy it much more than that, you may not really end up making much money on the deal.

Go to your local real estate investment club and look for private investors called %26quot;hard money lenders%26quot;. They will loan you the money and can provide flexible terms (no payments till you sell). They are not cheap, but if you bought the house right, you will be fine.

Hope that helps.

Remember, budget on the high side for rehabs for both money and time...you never know what you are going to find.

OK, so I want to start rehabbing real estate, and have a plan... but how does one finance this?

try looking at auctions

these are the best either gov ie back taxes

call your local county or town and ask when the back tax auctions are

you can find very very run down houses at pennies on the dollar

also call banks they have reposed/taken back houses that they need to get rid of these too can be badly damaged

some banks will even finance you to take their houses

hope this helps

OK, so I want to start rehabbing real estate, and have a plan... but how does one finance this?

In the US the terms would be construction financing or hard money. Loans that are secured by the project and based on either the present value of the future value of the project.

The key is your credit (construction financing) and the plan for what the project. Hard money will not involve your credit and you pay more than construction financing.

The 70% rule is key. Start with the ARV (After Repair Value) and then deduct everything that you expect plus a margin. All expenses for the work, all holding costs, closing costs when you buy and when you sell. The result is the maximum you want to pay.

One of the key reasons to start with 70% of ARV and then deduct the other costs is you can get a hard money loan for 70% of ARV in most cases. This means you know you can get a project funded if you buy at the right price.

What books have you read on the topic of investing in real estate? There are a number out there which are very helpful. Some specifically deal with financing.

Look for a local RE investment club. Also check out the links below for more information. When looking for good books try the library, a larger bookstore or Amazon. Many of the best ideas have been around for a long time so the age of the book does not matter that much. Read a number of books by different authors so you get some different perspectives.

OK, so I want to start rehabbing real estate, and have a plan... but how does one finance this?

Getting funding for re-habs is difficult. Anyone that tells you different is not in the field. Foreclosures and severly run-down homes have to be purchased with cash because banks will not lend on them due to the condition (foreclosures will only accept cash payment within 30 days of the auction plus you need a 10% deposit at the auction, not enough time to secure financing). Homes that are in need of cosemetic work are listed 5-10% below below market. This is not enough of a discount to make a profit because closing costs are 5-6%, when you sell your realtor commission is 4-6%, holding costs and renovation costs must be included as well. Flipping homes require some type of initial capital. You will need money for either down paymnent and pull the equity out to fund the rehab or get 106% financing and have money for renovations. Construction loans are ammortized over a year or 2 and disperse the money on a draw system; you have to show them plans, scheduled time frame and they inspect the progress before they give you additional capital. Hard Money requires a large downpayment at least 20% downpayment, the interest rates are higher. To be successful you have to have some capital (wether it be from equity from another property or your own cash) so you don%26#039;t run into financial trouble.

OK, so I want to start rehabbing real estate, and have a plan... but how does one finance this?

It will be very hard for you to get loans for rehabbing, based on your background....The best and less risky way to do it, is starting by rehabbing your own home and live in it while doing the repairs.....I don%26#039;t think your assessment of doing rehab in a month or less is unrealistic, there are so many %26quot;surprises%26quot; when rehabbing a home....

The way I got started was with my own home....We bought a fixer upper and did the repairs and lived in it for two years, sold it for a big profit and bought another.....I now do it full time and have done very well.....Its great that you are handy, but some jobs you will have to contract out for the sake of time.....TIME is money in this business......Also, I am a designer, my hubby is very handy, you will definitely need some one with an eye for design, you want to set your properties apart from the rest cookie cutter homes....

I use my own capital in this business, because financing these jobs can be VERY risky and I built up my capital very slowly, but it has paid off in a big way.....Hope this helps, there is no easy big money in this business, but doing it slowly and patiently....