Hello,
I've been wanting to invest in real state but i don't have much fund to start with.
Since i don't have much money to start w/, i am planning to refinance my 30 yr mortgage -using interest only loan. then get secnd mortgage same method.
Will a mortgage company be willing to do interest only payment for both mortgage.

My other question is,if a house is priced 300,000 and needs a TLC,how can I Profit from it.How should i price a houe before buying and after fixing.

Help Please,
Victoria

HI Victoria,

You can get a first and second mortgage I/O. If you tell your loan officer what your plans are you might benefit more- maybe a Pay-Option ARM? If you are looking for a short-term solution than that might not be a bad deal for you- min. payment would be 2% for the 1st, 2nd would be I/O.

Kelly

Hey Victoria, your agent should be able to crunch the numbers and tell you if it would be worth your time and effort for the profit. Find an agent that works with investors, and you should be good to go.

hello victoria since you said you have little money the last thing you want to do is pull out the little bit of equity you have in your home now and put it at risk rehabbing your first property.I would say get to know investment clubs in your area and meet up with a good investment realtor who specializes in this field.You could be a bird dog or a scout and spot properties for investors who want to rehab and sell them.You just get the deed assign it and then sell to an investor for a profit.Investing can be really complicated,i would start out with small risk investments while i was learning the ropes.The seminar and tape selling guys make it sound so easy so you will by the program but as in every field the competition is fierce and it's not as easy as they make it out to be.good luck
p.s.i would make sure whatever learning materials i bought were focused on new jersey as the foreclosure laws vary from state to state.

I would never recommend to one of my newer investor clients. to even consider what you have outlined. Far too much risk for someone that lacks the knowledge real estate investment requires... you would be speculating or possibly just gambling as many new "real estate investor wannabees" make the mistake in doing.

You invest with knowledge... you do not just decide to buy real estate and think it is an investment.

Sounds like a good way to lose your house.

Thanks all for your advices.

The reason why im refinancing my mortgage is not to take out extra cash but just to lower my monthly payments and sell house in 2 yrs and move into bigger house(family is getting bigger).
The difference between my mortgage now and after refinancing i was planning to use it for my monthly mortgage for the house i was planning to invest in- which was actually bought already by a lucky guy.

Thank you again