We’ve been busy in this series and there is still more to
cover! Yikes! Hopefully, you know more
now than when you did. Get
Powerful. Gain Knowledge. Become a property tycoon! You need to be smarter than the competition
so you can get the next deal. Knowing the lending rules is part of your education
to being a successful investor.
So I will leave you with a test. Let’s
test your knowledge and see how you do.
Scenario #1. You have
2 different homes that could be a deal but you can only do one:
- Home #1 - Home needs no work. Renter is already in it. Purchase price is $100,000 and it’s listed
below market value. Market value is
$105,000.
- Home #2 - Home that needs no work. No Renter is in it. Purchase price is $100,000 and that is at
market value. Owner is offering owner
financing at 7.5% if you put 10% down.
If you could only do one deal above which scenario above is
better? Or should you pass on both?
Scenario #2.
Home needs work.
Purchase price is $50,000. Repair
is $25,000. After Repair Value is
$100,000. You have $15,000 cash
available to you right now for this deal.
Should you wholesale this deal? Get hard money and then flip? Buy and hold? Pass
on the deal entirely?
And here’s the answer: there is no “right” answer to either of these Scenarios. Each answer could be different based on each
individual investor. The right answer is
based on your personal goals. But those
scenarios above are going to come up in front of you one day. With an understanding of lending and the
loans available to you hopefully you can make better decisions. We aren’t here to make the decisions for you
but we are here to help you make an informed and knowledgeable decision the next
time a deal presents itself.
Thanks for reading and if you have any questions feel free
to post away. Happy Hunting!
Andrew Postell
Gateway Mortgage
817-873-0621
Andrew.postell@gatewayloan.com