I searched in Foreclosed and real estate investing. What are people to do that want to put some real time and effort into flipping foreclosed houses when it comes to financing?
It seems we need big chunks of money for closing and down payment and renovation costs and holding costs.

we are checking out www.rehabfunding.com and www.brookviewfinancial.com as options.

any thoughts will be helpful

My husband and I do it. You have to have good credit. We usually have to put a minimum of 10% down plus our renovation costs. There is no easy money out there for flipping unless you have a rich uncle.

no rich uncle here

if there's a will, there's a way i guess

we have perfect credit...we'll have to see what the Above mentioned websites have to say

must be nice to flip in California where you can make 2 MILLION on 1 flip
(michigan ur lucky to make $2)

Perfect credit no such thing.You could make all of your payments on time,have too many accounts with high balances and still have a crappy score,also could have errors that are not your on your report bringing your score down.

1 st step pull tri-merge report and make sure everyhting is accurate on your credit.

2nd step if balances are too high you can ask for credit limit increases on your credit cards which will help boost your score.

3rd step there are 100 percent investor loans out there.The key is you have to have a job and have reserves with a 401k or ira to satisfy the lender with a 100 percent loan that you can make the payments while rehabbing or renting out.Your score has to be 720 to 740 or above.

4th step if you don't fit the mold you can get private party funding,owner financing,or hard money loans.The cost will be great but it will enable you to get started.Once you build up enough cash financing will become a non-issue.Fast closings and cash money speaks volumes to banks and desperate sellers when you present your low offers.

good luck

Bud I've got a couple of clients that would like to flip...and they have the wherewithall to do it.

This marketing we're entering might hold more opportunities, but we haven't seen a hugely lucrative flip property yet. They get snatched up and bid up by folks who need a place to live... and will pay over value to get it. Like I said its cooling off now and may change.

Next time someone tells you one of those $2M stories, remember the old song...

"All the gold in California... is in a bank in the middle of Beverly Hills in somebody else's name..."

You have a couple of options. 1. Find a hard money lender. They do not look at your credit as much as the deal itself. 2. Go to a bank, the smaller the better and get a construction or interim loan. This will cover aquisition, repair and even closing cost if the deal is good enough. I have purchased of 20 properties this way. The most I have put out of pocket was $1500.00 total. BTW with option 2 you will have to refi if you plan to keep the property. Good luck

I did the credit thing at freecreditreport and there are no errors. everythings on time and no balances on any cards. just a car loan and usual mortgage

Hard money lenders might be the route to start for us...i think

The 2 MILLION dollar profit flip was on TLC's Fix it Flip it or one of those shows.
That was his FIRST FLIP and he Screwed things up and still made close to 2 MILL.

WHEN you have big backers...you can make tons

Yeah, and what are the chances TLC would be showing a string of failures. Who knows how many they follow before one works out perfectly?

I would take those programs with a grain of salt.

Steele in Minnesota

Best thing to do is sit dowm with your banker, and discuss the options they have & what he can do for you. Hard money is the most expensive way to go... and don't always look for the home run deal. they do come along, some of the best & quickest money return have been on the mid range deals. Now of course the best money has been made on the homerun deals. Just remember it will talk more money to finish then you originally thought & will liley take longer to get it done.. But best of luck to you

Spacechimp, I have made millions investing in real estate (Full time investor/RE Broker) using my banks money. At times my credit score has dropped as low as 623(due to the amount of activity on my credit file)but I have never been turned down. I simply established a good working relationship with the VP of 2 small banks. I Borrow up to 80% LTV and structure the deal so that CC Aquisition and Rehab money is financed. I never flip though. I just refi and cash out. I keep the goose that lays the golden egg, and get the best of both worlds; monthly residual income and cash to buy fun toys or fund creative deals. Call some local banks and ask about construction loans sometimes called interim loans.

I do much the same, but with a $160k home equity line. It's great because the line is there for downpayment, closing costs, and fix-up. After the place is renovated, I can either sell or refinance it. Either way, I get my credit line paid back very quickly.

I found a local Washington Mutual office here that will let me do non-owner-occupied to 90% LTV with stated income, no prepayment penalty, and closing in the name of my company rather than my personal name.

My FICO is in the high 700s, though, which is probably what makes this all possible.

Spacechimp, Your headed in the right direction,Bpos are nice and help pay for gas and exp, but the real money is in selling, fliping, rehabing and selling, or buying and reselling in my opinion thats where the real cash is.Just find investors, friends, family buy propertys and resell them if you can or build your cash flow and do it one at a time and grow, work hard , be honest and the wealth will come. And is this is just my opinion! Good Luck


Mr Stark county
www.mrstarkcounty.com

OK, there's some GOod STUFF in this Thread


Kinda lost me on the following..
I don't know how you 'Cash out' after refinancing.

We have barely No equity in our house right now..just moved.

I've found that banks are going to want large down payments on a rehab house..combine that with Fix up and Holding costs and you have a Nice chunk of change needed to start this kind of venture.

Well, I'm starting to get ideas

Spacechimp, This should help you understand the principle of a cashout refinance:

150,000 Appraised Value

70,000 Purchase price (1st Closing)
120,000 Refinanced amount (2nd Closing)
-5,000 Closing Cost(2nd Closing)
45,000 (Cash at 2nd closing)
Hope this help.