2.
Re: Financing with hard money or investors Apr 14, 2009 10:25 PM
in response to:
LUCKIEST
Hey Luckiest,
Basically what we do is purchase REO homes, short slaes, auctions, and hardship homes. We find these homes through a very selective process we have developed with our team, which is based on the condition of the property,the status, price, age, size, and the availability of other homes in the area. We would then negotiate a price where we can buy up to 25-75% below market value. Afterward we would fix up the property with our professional contractors that we know and trust, going through the home repairing any and all problems, such as plumbing, electric, framing, bathrooms, landscape, and mainly the kitchen. Repairs on each home are anywhere from $5,000- $30,000. All of the bids for repairs and expenses are done before the property is even purchased.
Depending on the property, we would sell the home at 0-15% below market. That way the loan is secured on the property and if the market falls a little it wouldn't hurt the sale because we are still selling under the market. In most cases we make anywhere from $8000 to $30,000. However it is not unheard of to make significantly more. It always depends on how much the buyer is willing to pay in that certain area.
In most areas the market is down, however people are still buying homes because they need a place to live. In any case the home is always available to be put up for rent or lease. There are many different exit strategies.
My partner and I work with individuals that have been doing this for several years and have been very profitable, however we are looking to get our own investors to work with us. If you would like to get in touch email me at mtmproperties@yahoo.com or call 208-315-4383. We are based in Boise, ID area.
