Apr 04 2008
To help out my fellow human beings I decided to post my experience and thus I started this blog. 2116 Bixler is the property that inspired it. If you’d like to know more about real estate investing, I plan to share my knowledge and experience, so check out Real Estate Investing Basics. When you’re ready, I hope we can do business together some day. Legally speaking these are just my experiences, I make no guarantees.
Now on with the show.
March 2008. I needed cash. I had some income producing properties and I wanted to acquire more. I decided it was time to get into the rehab business. I had lived in Atlanta, a market where properties are relatively inexpensive. I felt comfortable knowing what a property should sell for in certain areas, and I knew that while it will cash flow negatively while it is under repair and not yet sold, I can afford it. I can’t say the same for where I live now.
April 4th, 2008 The property was advertised for $99k on the famous [and yes sometimes infamous] homevestors.com. The area supports prices around $135-$150k. I talked with Raheel Viranni of Viranni Properties LLC, a franchise of homevestors.com. We set up a deal where he would organize the hard money loan for $99k plus the cost of repairs, he would manage the repairs (estimated at three weeks), put me in touch with a refinance loan consultant and market the property for sale to a tenant buyer. The strategy is to find a tenant with decent job history that needs a bit of help with credit and wants to purchase the property. I also plan to refinance the hard money loan as soon as possible. The first payment on the hard money loan is May 1st. Closing on the refinance loan is scheduled for April 25th.
So far total out of pocket to me has been a $500 earnest money deposit.
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