Conclusion
Purchase a house with an idea of how much the
house would be worth after repairs. HUD, VA, Agriculture, Fannie Mae and
Freddie Mac homes need a lot of repairs, they are not new, but the
price at which they are offered at AUCTION is much less than it would be
if they did not need revamped.
There are many abandoned houses
in the United States and in the Commonwealth of Puerto Rico that
no one knows who the owner is. Now a days online access to the property
tax card lets one know who the owner is and his contact address.
In considering the ‘Purchase Price’ of the house to be acquired, consider:
· Cost of necessary materials,
· Cost of hours to fix,
· ‘Future Market Value’ after improvements and if
· An 80% loan on ‘Future Market Value’ recovers the cost of materials and hours worked.
The highest selling price after the necessary repairs: VITAL to determining ‘Purchase Price’.
Without
money or very little cash or with little credit it is difficult to buy a
house that needs a lot of repairs; but it can be done.
Through (meant for reference):
1. HUD 203K program
2. U.S.D.A. Direct 502 Loans
3. Contract for Title (Deed)
4. First Mortgage and Promise (Owner Financing)
5. Hard Money
A home can be bought with little money or no money down. I have purchased and restored the worse for wear houses. I have two witnesses to the houses that no one in their right mind would buy.
But I knew that if I repaired it and needed to sell the equity I built would help me to sell quickly, put money in my pocket, and money for buying another house.
I have done all of the above mentioned. I always bought at 80% of what the house would be worth after repairs and if I needed to get out from owning the house I knew I could sell it at 80% of market value REPAIRED and any Investor (even if blind) could see they were buying a 'HOME' with equity.
