finding & financing fixer-upper bargains

© 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


FINDING FIXER-UPPER BARGAINS: OLDER REO INVENTORY


FINDING FIXER-UPPER BARGAINS: VACANT PRE-FORECLOSURES


FINDING FIXER-UPPER BARGAINS: FOR-SALE HOMES


FINDING FIXER-UPPER OPPORTUNITIES: YOUR OWN HOME!


“REAL ESTATE’S BEST KEPT SECRET”

FHA 203K FEATURES

Funds for purchase or refinance & renovation


FHA 203K FEATURES

3½% down payment

– Can be gifted

- Assumable


FHA 203K FEATURES

Easier qualification

– Less than perfect credit

– Higher ratios


FHA 203K FEATURES

FHA loan limits

- $271,000 to $729,750


FHA 203K FEATURES

Owner-occupants & non-profits


FHA 203K FEATURES

1 to 4 unit & mixed use buildings


FHA 203K FEATURES

Standard & Streamline versions


GREAT OPPORTUNITIES FOR TODAY


OPPORTUNITIES FOR TODAY

Distressed properties – need renovation!



85% U.S. homes 20yrs or older



Need repairs for FHA financing


REAL-LIFE EXAMPLE : $33K IN CLEVELAND’S SHAKER HEIGHTS


REAL-LIFE EXAMPLE: 510K IN SOCAL’S COSTA MESA


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


SOLUTIONS FOR TODAY

Conventional financing unavailable


SOLUTIONS FOR TODAY

Great deals for millions of Buyers


WHO ARE 203K BUYERS?


203K BUYERS

First time buyers


203K BUYERS

Move-up & move-down


203K BUYERS

Urban location

close to work

shopping

entertainment


REAL-LIFE EXAMPLE: 183K CONDO IN DOWNTOWN CHARLESTON


203K BUYERS

Changing needs family, home office


203K BUYERS

Looking for discounts, sweat-equity


203K BUYERS

Occupant investors – 1 to 4 units


203K BUYERS

Smart buyers!


RESOURCES TO TAKE ACTION


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

http://www.realtytrac.com/203k

http://www.realtytrac.com/

finding & financing fixer-upper bargains

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