You can read Part 1 here: 19 Fatal Investor Mistakes
6) Since I can’t get a 30-year mortgage on the un-renovated property you’re selling, I’ll have to borrow money from a private lender and then do a second closing once the property is habitable. What are the pros and cons of this type of transaction versus buying a property that is already renovated and cash flowing?
I’ll admit that this is a loaded question because there’s hardly any comparison between the two options. Without a doubt one of the biggest ways new or out of town investors get in trouble is by purchasing a vacant, distressed property based on the seller’s opinions of the following: Continue reading