I am an 18 year old college student with no credit. I live with my parents and have no car of my own (no collateral). The only thing I feel I have going for me is a steady job (albeit a low paying one). That being said, the reason I wish to take out such a loan is that I (along with a friend) would like to purchase a small trailer in a town near my own to fix up and resell. I understand the market is in the toilet right now, but I feel that I am up to the challenge (or at least I hope I am). I realize that 60,000 dollars is a whole lot of money and that if this doesn't go my way (if it's even possible) I'd be in some serious debt. Regardless, I have done much research and while I don't at all consider myself an expert on the topic of real estate, I really believe that I can do this and I think it would be worthwhile experience. If anyone has any information about someone in my position taking out a loan this large or any tips on flipping houses, I would appreciate your input. Thanks.
2007-01-27 19:02:56 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
if u have no credit. there is a pretty goo dchance you cant do it.. you would need someone with credit to take out a loan of that size.. and to fix up a trailer.. that will b a lot of work.. you will have to b paying for tha house.. while you are fixing it up..
GOOD LUCK IF YOU PULL IT OFF THOUGH!!!
2007-01-27 19:15:20 · answer #1 · answered by Chuck 5 · 0⤊ 0⤋
There is no resale value in rebuilt trailers, you will lose money. Just to refurbish one to code will cost you big bucks, A trailer furnace costs over $1000. A trailer refrigerator, $1400. And you can't replace these usually with the cheaper household types. Some have Polybutalene plumbing lines, too, that are prone to failure, and hard to cut or repair. A new rubber roof kit, to stop leaks, is $1000, uninstalled. How will you make money off this? I would advise to buy fixer-upper houses in down-and out areas and fix them up instead. You could get them for around the same price, but renovation is way cheaper. About the loan, you will need a cosigner to start credit. Someone older with collateral. Good luck, though!!!
2007-01-27 19:13:03 · answer #2 · answered by Icefire 3 · 1⤊ 0⤋
I have a couple of concerns with this one:
1. It's not a good idea to go into a deal like this with a friend or family member unless you get some very specific guidelines in writing.
2. Trailers do not appreciate in value at all, so you end up losing money on the deal overall.
You're better off to rent and save what you can until you can afford something like a condo or house.
2007-01-28 15:12:07 · answer #3 · answered by Jen G 5 · 0⤊ 0⤋
Where do you live? You would be better off to buy a small house for $40k and taking a home improvement loan with a parent as a co-signer for $20k, then selling it for maybe $75k. Flipping a trailer is not a common business practice. First of all, you will be hard up to find a mortgage company that will loan on a trailer, secondly, they do not gain value as quickly as a house does. Consider buying a house. If you need a contact for a mortgage lender, let me know. Good Luck!
2007-01-27 23:48:37 · answer #4 · answered by chiefsarrowhead 2 · 1⤊ 0⤋
You can take out a mortgage if you have a downpayment. Usually you need 10% of the total price, but you may be able to do it for 5% or even less. The trailer is the collateral. As you are 18, you can sign a contract. However, you should learn how to do rehab, how to get permits, and how to negotiate the price you're paying and the price to sell it when it's done. You might also be able to negotiate a take-back mortgage with the owner, where you pay him/her directly. Talk to the bank about what you'd need to do, they'll let you know.
2007-01-27 19:14:52 · answer #5 · answered by Katherine W 7 · 0⤊ 0⤋
you are a fool for even trying to think about a trailer as a financial investment!!!!!!!!!!! they do nothing but lose value!!! it dose not mater how much you fix them up
if you want some good money though, look at getting 4-5 guys together in your same position to fix up a stick built house.
If you just need cash, I could set you up with a sales opportunity, some cool stuff to, knives, tools, candles, hammocks, not just soaps and nick knacks. It costs $6 for the materials to start up, but I can guarantee that if your a hard worker it is more than worth it!! (and its a lot better than $60,000)
If your interested email me candleman1982@yahoo.com
2007-01-27 19:34:03 · answer #6 · answered by Anonymous · 1⤊ 1⤋
Even if everything in the presentation is right and solid info, you're still not a financial institution. Plus, the majority of new businesses fail. "Great ideas" are a dime a dozen.
2016-03-29 06:01:29 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Bad idea!
Save some money, you are so young, wait until your 21!
2007-01-27 19:18:49 · answer #8 · answered by traderb550 3 · 0⤊ 0⤋