Buying Foreclosed Property By Way of Rehab loans
Rehab loans are an excellent choice for borrowers that desire to simplify and expedite the loan process. These types of loans are based on the value of the property being purchased and beneficial for short term flip projects that last a few months to a few years. Though interest rates a higher, qualifying is less stringent than traditional conventional loans and the application process is streamlined providing rapid funding for high return opportunities that can be gained when purchasing the right foreclosed property.
What to look for when purchasing a foreclosed property
When searching for a good buy on a foreclosed property consult a local real estate agent and discuss possible neighborhoods that are considered desirable to the average homebuyer. Nothing is worse than spending time and money to rehab a property that, once renovated, will over compensate an area and sit on the market for years and years. Do your homework and search for quick-flip properties in sought-after areas that need minor repairs like; paint, front doors, flooring, conservative layout design, and landscaping. Avoid properties with major structural repairs, plumbing, and roofing issues as these can quickly absorb your budget and limit your profitability.