finding & financing fixer-upper bargains
Post on 20-May-2015
1.572 Views
Preview:
DESCRIPTION
TRANSCRIPT
© 2013 Renwood RealtyTrac LLC
Finding & Financing Fixer-Upper Bargains
WHAT WE’LL COVER TODAY
• How to find potential fixer-uppers– REO, pre-foreclosure, vacant pre-foreclosure, for sale– Don’t forget the home you live in!
• The renovation loan that is real estate’s best-kept secret– Basic features of the loan– Opportunities to use the loan– What buyers and properties qualify
• Resources to take action• Q&A
© 2013 Renwood RealtyTrac LLC
FINDING FIXER-UPPER BARGAINS: OLDER REO INVENTORY
© 2013 Renwood RealtyTrac LLC
FINDING FIXER-UPPER BARGAINS: OLDER REO INVENTORY
© 2013 Renwood RealtyTrac LLC
FINDING FIXER-UPPER BARGAINS: VACANT PRE-FORECLOSURES
© 2013 Renwood RealtyTrac LLC
FINDING FIXER-UPPER BARGAINS: VACANT PRE-FORECLOSURES
© 2013 Renwood RealtyTrac LLC
FINDING FIXER-UPPER BARGAINS: VACANT PRE-FORECLOSURES
© 2013 Renwood RealtyTrac LLC
FINDING FIXER-UPPER BARGAINS: FOR-SALE HOMES
© 2013 Renwood RealtyTrac LLC
FINDING FIXER-UPPER OPPORTUNITIES: YOUR OWN HOME!
© 2013 Renwood RealtyTrac LLC
“REAL ESTATE’S BEST KEPT SECRET”
FHA 203K FEATURES
Funds for purchase or refinance & renovation
© 2013 Renwood RealtyTrac LLC
FHA 203K FEATURES
3½% down payment
– Can be gifted
- Assumable
© 2013 Renwood RealtyTrac LLC
FHA 203K FEATURES
Easier qualification
– Less than perfect credit
– Higher ratios
© 2013 Renwood RealtyTrac LLC
FHA 203K FEATURES
FHA loan limits
- $271,000 to $729,750
© 2013 Renwood RealtyTrac LLC
FHA 203K FEATURES
Owner-occupants & non-profits
© 2013 Renwood RealtyTrac LLC
FHA 203K FEATURES
1 to 4 unit & mixed use buildings
© 2013 Renwood RealtyTrac LLC
FHA 203K FEATURES
Standard & Streamline versions
© 2013 Renwood RealtyTrac LLC
GREAT OPPORTUNITIES FOR TODAY
© 2013 Renwood RealtyTrac LLC
OPPORTUNITIES FOR TODAY
Distressed properties – need renovation!
© 2013 Renwood RealtyTrac LLC
OPPORTUNITIES FOR TODAY
85% U.S. homes 20yrs or older
© 2013 Renwood RealtyTrac LLC
OPPORTUNITIES FOR TODAY
Need repairs for FHA financing
© 2013 Renwood RealtyTrac LLC
REAL-LIFE EXAMPLE : $33K IN CLEVELAND’S SHAKER HEIGHTS
© 2013 Renwood RealtyTrac LLC
REAL-LIFE EXAMPLE: 510K IN SOCAL’S COSTA MESA
© 2013 Renwood RealtyTrac LLC
As-Is Sales Price: $450,000
Property Condition/Issues:• Missing kitchen appliances• Missing portions flooring throughout house• Needed electrical and drywall repairs
Total Renovation Costs: $35,000
Purchase Price (As-Is): $450,000Total Renovation Costs: $35,000Total Cost: $485,000FHA 203k Base Loan Amt. (96.5% LTV): $468,025Down Payment (3.5% of Total Cost): $16,975After-Renovated Value: $620,000
Renovation Financing - FHA 203k
ACTUAL FHA 203K EXAMPLE
© 2013 Renwood RealtyTrac LLC
SOLUTIONS FOR TODAY
Conventional financing unavailable
© 2013 Renwood RealtyTrac LLC
SOLUTIONS FOR TODAY
Great deals for millions of Buyers
© 2013 Renwood RealtyTrac LLC
WHO ARE 203K BUYERS?
© 2013 Renwood RealtyTrac LLC
203K BUYERS
First time buyers
© 2013 Renwood RealtyTrac LLC
203K BUYERS
Move-up & move-down
© 2013 Renwood RealtyTrac LLC
203K BUYERS
Urban location
close to work
shopping
entertainment
© 2013 Renwood RealtyTrac LLC
REAL-LIFE EXAMPLE: 183K CONDO IN DOWNTOWN CHARLESTON
© 2013 Renwood RealtyTrac LLC
203K BUYERS
Changing needs family, home office
© 2013 Renwood RealtyTrac LLC
203K BUYERS
Looking for discounts, sweat-equity
© 2013 Renwood RealtyTrac LLC
203K BUYERS
Occupant investors – 1 to 4 units
© 2013 Renwood RealtyTrac LLC
© 2013 Renwood RealtyTrac LLC
203K BUYERS
Smart buyers!
© 2013 Renwood RealtyTrac LLC
RESOURCES TO TAKE ACTION
© 2013 Renwood RealtyTrac LLC
1. RealtyTrac 203k Loan Resource Center: www.realtytrac.com/203k
• Much more details on the loan• Find a local 203k loan specialist• Cool infographic on how 203k works
2. Search for homes: www.realtytrac.com
top related