Like with any business that you get into there are many hurdles to overcome in residential real estate investment/ “we buy houses cash Spokane” investing. One of the biggest ones is finding money to borrow for your deals.
This was a big problem for me as well, and the main reason for this is because I had tried many different things and failed at many as well. Lets’s just say that my track record was not spotless.
Because of the internet there are many different hard money lenders to be found, however if they are a national lender most of the time they will only take deals at a ridiculous rate and charge massive points, and who could blame them? They have no idea about your local market which makes it a way bigger risk for them, and they do not know you either.
With so much competition out there you have to find money that you can afford to be able to play the game. When we started to market sell my house fast Spokane we had very little money, but lots of determination. We had just enough to buy a house, which was great.
The first house we did all the work ourselves, which in the end netted us 24k. Now all the gurus will say that you don’t want to do any of the work yourself, and that is true for a seasoned investor that has a system in place to buy houses cash fast. But for the beginner sometimes you have to put in a bit extra sweat equity to put more in your pocket so that you use that extra capital to then buy another.
The best place to find lenders is local rei meetings.
What most people don’t tell you is that hard money lenders will always want you to put a down payment on the loan when you are buying a house for cash. It is very important to find a good local lender that wants to work with you. We currently have a deal worked out with our money lender where we pay 11% annually but we have no upfront costs, no points ect.. We worked out a deal where if we make our min profit margin which is 20k then we don’t have to pay points, however if we go over we have to pay 1.5 points. When we started with this lender it was 3 points and 11%, but as we have done business together we have been able to work out a decent deal. And we will continue to push to get interest down to 6% or so. It is all about a lenders risk level, and to our lender we are low risk now. When he believes we are no risk he will be willing to lower his rates more.
Sometimes even doing the worst house in town can work in your advantage, because usually if it is that bad all of the big investors in town have already passed on it and know about it. If you run into one of those and you are confident enough to do the work take it, because people will notice when you finish and do a good job. It will give you instant credibility and they will know that you can handle anything. This happened to us.. I will post pictures of this house later.
If you need to sell your house fast in Spokane go to cashforspokanehouses.com and we will get you taken care of.
via cashforspokanehouses Blog http://cashforspokanehouses.com/blog/2015/09/26/cash-and-buying-houses/