Ralph J. Pratt GRI, ABR, CMP

Be very careful, if you are just starting out to build a real estate portfoilo make sure you have some money to survive. I mean the market can and will eat you alive. Hard money? Why? Lets say you get a property at 50% below the market and your get a hard money loan at 12% and in most case's 16%, If you plan on fixing and staging the property where does that money come from, even if you do the labor you have to pay for the materials. The hard money people don't come cheap, they charge some serious up front fee's and add some more to the loan. If you have good credit you don't need these people. Also you have real estate fees and escrow costs involed to sell it afterwards. Don't forget the payment to the hard money people. Go to my website or someone's and use the mortgage calulator you'll see what I mean.

Homes in the Sacto area, thats where I am also, are not moving to fast as a matter of fact down right slow. If you plan on asking top dollar you'll be on the market for six months in most areas. The hard money guy will make the profit and you'll do all the work. Be careful! I know these late night real estate info commercials make it sound so easy, must people just throw good money after bad money spent on a bunch of books that may as well be written in Greek. If you don't know the business get your licsence and learn how its done in the real world or find an honest Realtor to help you. There are 100% loans out there but there are restiction to them. Its not easy trying to flip property with no money down and no money to back you up! Again be very careful. Good luck. - Sat Jul 21 2007, 17:48