David Brower, Assistant Manager/Realtor
Good question. It seems you got good answers already. My team and I do exactly this in California. There are several components here. You must first line up pre-approved buyers, if they have bad credit get it fixed, this is what I do for our team. The other component is to arrange private money, add more time on the contract than you think you will need. Then you need to get the contractors who will do the projects on time and on budget you need contracts for this. You need good realtionships with the REO Realtors or the banks directly so you can clear out large amounts of inventory and get a fabulous price on the properties.
Your challenge is going to be that you purchase an REO, that sets a comp how are you going to "add value" to the property quickly in a rehab to get a much larger purchase price than you paid? The new lender is not going to agree with you about the new price because you're beautiful and have a nice smile. You will need a comp that is proof of the value of the property rehabbed.
My team and I do not use hard money because their is no way to confirm that we can get out of the property in 6 to 12 months given unemployment is on the rise and many banks are insolvent and not lending. Therefore, I would also suggest your local REI and see who is doing this in your area successfully and partner with them by adding "value". Perhaps you can get more buyers lined up, perhaps you can get private money, perhaps you have a releationship with a bank and can negotiate REO portolios, or perhaps you can do what I do and offer Credit Repair services for the buyers? Good luck Shyla!
2) You need 25% down, minimum, as an investor. Contact me if you want referral of lenders who may be able to finance.
3) We manage over 120 properties in the "intown" area of Atlanta. If we cannot help you, perhaps we can refer you to someone who works/manages in the area which your property is located.