If you have a good plan and you have designed it correctly, you should be able to make a lot of money in the home rehab business. If not, you might get into trouble.
First, you must have located a good mortgage broker who gets loans for ugly houses using private lenders, of course they won’t do it for free. He is going to make his money just like you will make your money.
Once you start helping him get loans, and if he likes you. And you become good friends, it is incredible the offers that he can offer you.
Second, you need to find a good title company, you really should have at least two and three doesn’t hurt. As you move forward and build your business, you’ll have a few that you seem to work better with, and those are the ones you’ll need to stick with.
Third, you will need to establish a community referral system. How? When joining the Lions club, as well as another community organization or two, make sure you attend all of their meetings and keep reminding them of the business you’re in.
Fourth, you should contact everyone in your area who has anything to do with the sale or lease of any type of real estate. Do you call them regularly and ask them about the houses they couldn’t list? Why not? Try to get the details.
Fifth, as you start buying homes, you’ll want to focus on making no-down-payment loans. You can’t get a loan like this if you don’t apply.
Many people are afraid to ask, because you set up offers to present to homeowners, many times you will set up a loan and even if you don’t mention it, there is no interest.
You may specify in your proposal, for example, sir, I will pay you 180 payments at $700.00 per month at the end of this time. I own the property of the stock and the barrel. Just try to make a sizable profit on this type of offer. Sometimes it works and sometimes it doesn’t.
The sixth and last point, if the property is free and clean and you have no loans, you should try to make offers that the owner can agree to after you have spent several hours talking to him, at some point you can learn from him what exactly it’s your hot button. Once this happens, test it out by circling his hot button on the deal.