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Y’all - “Somebody should to come fix up/do something w/ these abandoned houses/buildings”
Okay, well..know you + a couple friends can be that “somebody” right?
Here’s how you can do something w/ houses in the hood and not need a lot of money to do so
(Thread)
Okay, well..know you + a couple friends can be that “somebody” right?
Here’s how you can do something w/ houses in the hood and not need a lot of money to do so
(Thread)
Found this vacant house. Contacted the owner. Here’s How it looked before. Not bad, just dated.
Here’s how it looks now
Here’s how the kitchen looked. Again, Not bad, but just outdated
And this is how it looks now
Here’s how the rest of the house looked
and after
Purchase price - 35K
Rehab - 55K
ARV - $130K
(ARV is new value, after repairs)
Seems like a lot of money right? You can actually get into this deal with only 10% down. Lenders will lend 90% of cost of project. We got into this deal with only $9.3K down at closing
Rehab - 55K
ARV - $130K
(ARV is new value, after repairs)
Seems like a lot of money right? You can actually get into this deal with only 10% down. Lenders will lend 90% of cost of project. We got into this deal with only $9.3K down at closing
But this is where it gets good
Because house is now worth $130K after being fixed up, You can get a new loan loan on the
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏠" title="Haus" aria-label="Emoji: Haus"> for 75% of the new value. 75% of 130K is $97.5K
That pays back the $90K borrowed to do deal, + any extra fees u incurred AND your down payment money
Because house is now worth $130K after being fixed up, You can get a new loan loan on the
That pays back the $90K borrowed to do deal, + any extra fees u incurred AND your down payment money
for 75% of the new value. 75% of 130K is $97.5KThat pays back the $90K borrowed to do deal, + any extra fees u incurred AND your down payment money" title="But this is where it gets goodBecause house is now worth $130K after being fixed up, You can get a new loan loan on the https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏠" title="Haus" aria-label="Emoji: Haus"> for 75% of the new value. 75% of 130K is $97.5KThat pays back the $90K borrowed to do deal, + any extra fees u incurred AND your down payment money" class="img-responsive" style="max-width:100%;"/>
This means that you put down $9.3K to get into this deal. But when done. You get all your https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> back plus still own the https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏠" title="Haus" aria-label="Emoji: Haus">. We have NO MONEY tied up in this deal now.
New monthly mortgage is $1,000 per month. Section 8 tenant pays $1,700 per month. Do the math
New monthly mortgage is $1,000 per month. Section 8 tenant pays $1,700 per month. Do the math
We now owe $90K but the https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏠" title="Haus" aria-label="Emoji: Haus"> is worth $130K. We could sell it right now and pay off student loans or keep it, let the equity grow and keep collecting $700 month on it forever while the value (equity) continues to go up
Oh and before the gentrification police start - I—black dude—and my black friend bought this from a white guy, fixed it up w/ black workers, put a black renter in the house. Don’t start that shit today, please
Bought with business credit and a loan. Don’t need a lot of cash.Just takes a little creativity. You and or your friends can do the same. I have a whole course on how to do so.
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