Replies

1. 
   Dan_Dear | Apr 10, 2001 05:36pm | #1

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   I'd say youll need to upt down at least 10% of the agreed upon price to get a mortgage. In addition, most lenders will let you "roll in" the additional amunt needed for the remodeling. However, they will want details about the remodeling as in a design and Proposal, and will only pay out those remodeling monies in stages as the remodeling proceeds. They will also, (for your benefit also), probably require an appraiser of the market vaule before the remodeling and it's market worth after the remodeling would be completed - again to protect their own investment.

   Many people do exactly as you propose. Remember, as in real estate, the #1 importance is location.

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   DanT_ | Apr 10, 2001 08:26pm | #2

   *Try http://www.creonline.com for some interesting methods and thoughts. I have been doing this for years. I typically keep them and rent them although I have sold a few. Most conventional lenders are not wild about dealing with the type of situation as there are a lot of good intentioned folks that don't get the work done, the lender ends up with the house back and it is half done. Then the bank takes a bath selling it to people like me. Lender also frown on lending the purchase money and the rehab money also. bonny is right, location is king in real estate. Dan

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   Mark_McDonnell | Apr 11, 2001 02:41am | #3

   *Tim, This is how I have done 3 houses, the last one being the one I live in.With no money down.1. Find a morgage broker, one that specializes in construction loan. Find out what your good for. (loan amount)2. Find a realtor, or do the research yourself.3. Find the perfect property in the perfect location. (this might take some time, so take your time)4. You have to convince the bank that this is a low risk deal. You do this by providing: A. Plans, complete w/ elevations. B. Detailed budget w/ all materials/ fixtures/finishes. C. Description of the finished project. D. Comps, prepared by Realtor.5. You take all this stuff and with the bank, (or without) Hire an appraiser to appraises the property, the plans, the described finish. The appraiser comes up with an appraised value of the finished project. Example: Finished value- $200,000.00 Loan amount- 80% of value $160.000.00 Purchase/constuction costs-$160,000.00In theory you should have an appraised value that will allow the bank to loan you 100% of the purchase price and the constuction cost. Most likly a intrest only ballon note. Following reappraisal at completion, after a period of 3-6-12 months, the note gets converted into a 30 year morgage. You'll work your butt off!Luck

1. 
   Tim_Ammon | Apr 13, 2001 03:05am | #4

   *Hey Sonny, Dan, Mark I want to thank you for your information this is what I needed to get started. And I really do appreciate it that you spent the time to help me out. thanks again. Tim

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   Tim_Ammon | Apr 13, 2001 03:05am | #5

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   I have been in the trade for 15yrs. I have worked with a handful of different contractors. I have a wide scale of experience, I have been on my own for a couple of years now. Just enough to get by but I want to buy a house and remodel it and put it back on the market. Now is it possible to do this without the money to buy the house with cash. Is this just a dream or could this be done. I have the skill and the knowledge but just not the money. All I will need is to do one house and that would get the ball rolling. can this be reality? all comments are welcome (good or bad) I appreciate your time. thanks Tim