Loan for rehab

rustic house, country house, derelict building-3918864.jpg
Posted by: j404 Apr 7 2004, 12:50 PM

I am very interested into getting in real estate investing. I eventually want to have some rental properties, but right now I want to get into buying, reahb, and selling. I was planning to move back to North Carolina to start this up. I need the money to buy my first foreclosed home and the money to fix it up and other fees.(40-55k) I wanted to know the best route to go. Could you help me?

Posted by: loanuniverse Apr 7 2004, 01:24 PM

I wish I could help you, but there just isn’t enough information for me to even start and point you in the right direction. All I can say is that since you want to start this type of activity then you might want to take a look at all of your financing options not just think of getting a loan on the properties in order to finance the transactions. What I am trying to say is that maybe you need to sit down and assess your assets and most importantly any resources that can bring you the money that you need.

Getting a line of credit to fund these types of transactions would be the exact definition of a “speculative loan”, and most lenders are not in the business of funding speculative loans. On the other hand, you are looking for a relative small amount of money. You have to start thinking of there is another way that you can borrow that money. First thing that comes to mind is your personal residence, then relatives, then unsecured credit.

I would also not start anything like this full time. I would hold a regular job and do the rehabbing on the weekend.

Hope this helps.
Author: Commercial Loan Underwriter