I would rather have a grant if I can get one…I want this money to invest in real estate that needs repair, I intend to repair property and use it for rental housing.

The area I am in is in need of decent housing, rent will be 0.00 on average to 0.00 depending on the size of the property.

I need a long term with low interest rates if it is a loan, because I am a poor man, below middle class, and I will need time to work and pay back such a large amount if my project don't workout, but every cent will be repaid and on time…my word is the most important thing I have, and I always make sure I have a way to keep it before I make it.

I’ve been looking into real estate investing for about a year now. I’m still in High School but am wanting to learn as much as I can about it, so that after college I can begin investing. I never owned a home of mine so please bear with me if my questions seem dumb. Basically I’m looking into rehabs, and my questions relate to the loans and out of pocket expenses.

When you take a loan out(bank loan or private mortgage loan) what exactly does that cover? Does it also cover any holding costs, selling costs(agent commission and closing costs), purchase costs(like points up front, interest), repair costs, or does it just cover the sale of the home? Are the holding costs, selling costs, etc expenses that come out of my pocket?

Also, is there anyway payments on the loan can be withheld until the actual sale of the home? My plan would be to buy a home, fix it, and then sell it all within a 2-6 month time period. So I wasn’t sure if lenders would just wait until the house is sold to collect their money

I know down payments are usually around 10-20% of the value, would I be able to borrow the money from a private lender to use as a down payment?

Thanks in advance for any advice that comes my way, and thank you for understanding.

I have a business where I buy real estate, rehab and flip and/or rent. My partner and I are doing great but we are looking for private investors to bypass banks. The main question I have is this: What type of return do you pay to the investor? Is it a percentage of the total loaned, monthly payments from rent…? We simply dont know. So, If I bowrrow k from an investor, do I pay him back (as an example only) k? Do I give him monthly payments? Is their a time frame?

Thank you VERY much in advance. I live in Illinois and we are trying to figure out the most amicable way to repay the investor.

Thanks!!
All,

Excellent responces and I thank you. I have another question: How do you find private investors?

And How do i go about it? I took a brief real estate class and i remember the general discussion of hard money lenders and how they give you a large sum for a short time for things of this nature. I'm thinking about getting my first home but have limited funds and thought of this as an alternative.

We are looking for a ,000 loan or credit line for our business. We have been around for almost two years and we have good collateral through real estate investing. We also have good personal credit. We have not applied before but now we would like to have access to reserves credit to pile cash. Should we look at some small local banks or a bigger bank for this?

Thanks