Posts Tagged 'repair budget'

FHA 203K Loans and How Real Estate Investors Can Benefit From Them

Posted on: January 24, 2011

Categories: Buy, Fix, How To, Investors

Author: lbuen

These days, getting funding for your handyman specials from hard money lenders are getting harder as their requirements become more rigid. Traditionally, getting funding from these private lenders was almost as swift as their speed of driving by the property involved in the deal for inspection.  At the present real estate climate, however, many of these lenders may check on the tax returns, bank statements and current pay slips of borrowers. For this reason, some REI’s may be seeking for other financial fountainheads to fund their deals. Usually in their search for alternative source, they give Federal Housing Administration’s 203K loans the brush-off.

Giving 203K Loans A Second Thought

Ever since the Department of Housing and Urban Development set down the moratorium on investor involvement in the 203k Rehabilitation Program, ethical REI’s avoid this loan program lest they be… Read the rest

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4 Great Reasons Why REIs Must Do A Green Rehab

Posted on: January 12, 2011

Categories: Fix, Ideas, Investors, Property Management, Things To Consider

Author: lbuen


Image by lawtonchiles via Flickr

With the growing social awareness of the need to care for the environment, emphasizing the importance of  green living to parry climate change, every rehabber may have toyed the idea of doing a green rehab. So what’s holding you back from jumping on the green bandwagon?

While you think of some excuses why you cannot get involved in green rehab, here is a list of why you should:

1. Let’s Begin With the Obvious: Green Rehab to Help Minimize Climate Change

It is the conscientious thing to do. Since this opens up to a larger topic, and perhaps may spark several arguments, let me leave it to Greenpeace and other tree huggers to expound on it.

2. Do Green Rehab to Cash In on the Growing But Untapped Green Market

The… Read the rest

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Where to Source Your Rehab Funding

Posted on: January 10, 2011

Categories: Buy, Fix, Investors, Property Management, Things To Consider

Author: lbuen

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

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Check Out Our Latest Rental Property – Another Buy, Fix, and Rent

Posted on: June 23, 2010

Categories: Buy, Fix

Author: buyfixandprofit

Check Out Our Latest Rental Property – Another Buy, Fix, and Rent

Nothing Fancy – Just Another REO Purchase

This home was a standard REO home listed for $55,000.  We originally offered $35K and came to a final compromise of $38K with the bank.  Once again, our offer was accepted over other higher offers solely on the basis that ours was a non-contingent cash offer.

This is the 10th property added to our rental portfolio all of which are in the same neighborhood.  This property was purchased with all cash in order to keep things simple and provide leverage for our offer.  Based on the 50% LTV after repairs on this property and the large equity positions in our other properties, our commercial lender allowed us to cash-out 100% of the purchase price and and provided us 100% of the repair funds for our latest project.  So at the end of the… Read the rest

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Estimating Construction Cost – Actual Repair Budget Attached

Posted on: September 15, 2009

Categories: Fix, Real Cases

Author: buyfixandprofit

Real Construction Budget Estimate

The numbers listed below are actual repair costs for a standard bank owned single family home. My partners and I have rehabbed over 50 homes together and we have never been able to achieve the cheap rehab costs as shown on Flip This House and other quick flip home shows. I do know that our costs are in line or less expensive than what other investors pay in our area.

Duration of Rehab = 25 days

Rented within 1.5 months

Cash Flow is $220 / per month with no money out of pocket

Real Rehab Repair Budget – 1,100 sq feet, 3bd, 1bath house

DRAW 1

Demo Garage
Demo garage & dispose debris
$2,500

Roof
Overall good condition, some repairs needed
$500

Gutters
New gutters
$1,000

Soffit & facia repairs
Repairs
$500

Foundation/concrete
Outside,side walkway,

Read the rest

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Rule of Thumb Costs for Rehabbing a Foreclosed Home

Posted on: September 15, 2009

Categories: Fix, How To

Author: buyfixandprofit

Standard Foreclosed Home 1,000 sq. ft. 3 – 4 beds, 1bath
Rule of Thumb Costs (costs are averaged)

EXTERIOR

Roof – standard tear off and reshingle
$4,000

Roof – replace plywood
$1,500

Roof – add a layer of shingles
$3,000

Vinyl siding (removal of old siding included)
$6,000 or $5 – $6 / sq. ft.

Tuckpointing
$1.50 / sq. ft.

Pour new concrete – 4″ deep
$7.00 / sq. ft.

Replace windows
$225 – $250 / window

Cap windows (w/ aluminum)
$80 – $100 / window

New soffets and facia
$2,500

Install new gutters
$1,200

Replace exterior doors (steel or solid wood)
$400 – $500 / door

Landscaping/grounds cleanup
$500 – $1,000

INTERIOR

Gut whole house interior – includes disposal costs
$2,500

Rough plumbing – run new copper plumbing through house
$4,000

Upgrade to 100A panel
$1,500

Rough electric

Read the rest

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