Avalanche of Money Lenders Replaces Customary Lunch with Private Investors

Luncheons with a coterie of investors with deep pockets used to be the avenue that lead real estate investors to the Land of Ready Cash. Today, however, more and more private lending companies are purveying rehab loans to rehabbers and real estate investors who want to renovate their rental properties. The government is also offering rehab funding with terms and conditions varying from city to city.

A real estate investor does not have to go far to look for a rehab loan. Skipping the need for leafing through the menu of the restaurant where private investors’ money were used to be raised, a cash-hungry real estate investor can instead browse the Internet for a list of lenders for this kind of loan. For the newbie, however, selecting the lenders… Read the rest

Should you be afraid of trying to comply with the EPA’s new lead based paint laws?  I have heard several real estate investors offer up many different opinions on this topic.  Based on the fines involved, I would not willfully violate these laws whether you like them or not. The six ideas presented below are derived directly from the EPA’s FAQ website.

The good news is that only one in four homes built after 1950 has lead based paint.  Depending on your city, this may not affect you very much.

The first thing you have to do is pay $300 to have your firm lead based paint renovator certified; which is strictly a fee in order to get on the EPA’s approved list and receive an approved vendor certificate.  Then, the newly certified firm has to pay to have their… Read the rest

Typical Foreclosure Viewing Instructions: Remove the Front Door Yourself!

Most experienced real estate investors and rehabbers have figured out a way to bypass having to be accompanied by a real estate agent every time they view a vacant home or bank owned property.  Some investors decide to get a real estate license for themselves while others have friends as real estate agents that get the lockbox combos for them. Others just sweet talk or persuade the listing brokers into offering up the combos – it’s possible.  These practices aren’t being recommended, so be careful not to get in trouble if viewing a vacant home without permission.  Many agents will actually instruct investors to bring a power drill with them to remove the front door to gain access to the house as long as the door is screwed shut upon leaving. … Read the rest

Short-Term Loans

A hard money lender makes short-term loans based on the value of an asset, in this case a property, with little regard to the borrower’s credit and/or finances.  Hard money lenders charge higher interest rates than standard banks due to the high risk nature of these loans.  Unlike traditional banks, hard money lenders can provide funds quickly, usually in 10-14 days, to purchase and rehab distressed properties.  These properties can be in need of significant repairs or be in various stages of foreclosure. This makes these loans popular with first time real estate investors that have little working capital or poor credit scores.  Look to use hard money loans to rehab foreclosures as your means to purchase and rehab your first couple properties.

Rehabber Loans

Hard money lenders will only provide loan terms of 4 – 6 months at… Read the rest

Roof

A cheap and effective roofing rehab choice can be the use of roll roofing.  This choice is better suited for homes with steeply pitched roofs.  Instead of shingles, this roofing choice is rolled onto the roof and stapled in place.  This choice is cost effective and reliable if installed correctly.  Now it does not look as nice as a shingled roof, but we have not had any difficulty renting out homes because of this.  The appraisal was not effected either.

Another option is to add another layer of shingles to the roof depending on what the local building code allows.  If the roof is very old there is a good chance that the plywood will have to be replaced also.  Analyze the roof carefully because there is ~ $4,500 difference between a full tear off and replacement versus just… Read the rest