When you first sit down and share your foreclosure information with the seller, it doesn't seem to know your exit strategy [how you will deal with foreclosures after you accept the offer] Important before they even sign the purchase contract. but it is not the truth.
Important advance foreclosure information after acceptance
What you do when you cancel your foreclosure property is just as important as when you get an offer from the bank.
- If you buy a house, where do you get the money?
- If you borrow money, how much do I need to let the house pay interest?
- Will you rent/lease or sell the property after rehabilitation?
- Are you going to repair?
- If you don't want to fix it, who will?
- If you are not, do you have a person who is interested in buying a house?
- If you don't, where would you find someone to buy a house?
For all these important issues, you need to consider them throughout your foreclosure process. Once the offer is received, you usually have 30 days to complete the transaction. So time is of the essence.
If you have answered most of these questions and they are in place, it is much easier.
We bring one at a time.
from
Yes, you plan to buy a foreclosure home and do your own repairs. You don't have money, but you do have experience in rehabilitation.
Buying foreclosed homes is a great way to build a portfolio of properties and build a net asset. You can get money from a personal lender, a hard currency lender or a mortgage company.
Use a personal lender when buying a short sale before foreclosure
A personal lender may be someone in your family or a circle of friends who know you have completed some rehabilitation and are interested in increasing your income and trusting you. They may lend you 8% of this money because they currently only get 4.5% of the profits in the money market account. good idea!
You only need to prove to them that their funds will be safe through the property's first mortgage, and that the amount you purchase is less than 70% of the post-repair value [ARV] or the price after the fixed value and fair market value. neighbor.
They can provide you with cash directly, or they can get cash from their self-directed IRA [more on this later], and these funds will become tax-free.
Use hard money lenders when buying foreclosures
Hard currency lenders charge higher interest rates, usually pointing to the previous period. [Every point is 1% [percentage] of the loan amount. They may or may not see your credit, but usually don't want this to be your first deal. They want you to repurchase and buy the property. Experience, let them feel safer without knowing you. They usually don't ask for credit reports. They borrow because there is equity in the property, and if you don't pay, they will cancel the property.
Another way to build trust with a lender is to provide more pre-stop information. If you default, please sign a contract with your private lender to return the property to your lender. The contract can be saved as a custodian account for a lawyer or Title Company.
Give your lender a choice to prove that you want to make sure his investment is safe, which is a good way for them to lend you more money!
Orignal From: Exit strategy for the purchase of foreclosure part 1
No comments:
Post a Comment