..."That would be great but I don't have a business. Real Estate investing is a part time gig for me and I only have one single family home in my portfolio. I'm trying to grow my RE investment portfolio and I think I'm looking at a great deal but I may just end up financing this thing myself. It seems it's really hard to find a mortgage for such a small amount and I don't want to pay 12% Hard money rates. I don't want to wrap all my cash up in this property either but that is the route I'm looking at taking. I have seen advertisements for business lines of credit all over the web but didn't think I qualified since I don't operate a "business" so to speak."
Paying the 12-15% on a private loan is temporary and very well worth the investment.
You are not going to be paying 12-15% for 15 or 30 years like a conventional mortgage.
It will be at most 3-5 yrs, you will be paying maybe $4000 dollars to make $40,000 or more when you flip.
Till you are able to pull out the equity, and pay off the first loan.
You will be buying a valuable property and make your money when you purchase.
Make sure you buy at .60 cents on the $1 and the property is in an area that is stable and steady. Do as much of the labor yourself.
Start an LLC for yourself, these days you need that protection, $700 is about what it will cost you. But it will save you headaches in the future.
Go for it you sound like you have done your homework. Trust your gut.
Dec 3, 2008