Purchasing any home involves a lot of “hoops to jump through”. Want to buy distressed homes? There are still many, but perhaps just different hoops. Here is what Reel Property Solutions LLC goes through to buy distressed homes.
This very important piece of the puzzle will unveil many things such as:
Liens are typically financially based such as the mortgage. Have unpaid taxes? This will most likely become a lien. What if a neighbor built a garage and didn’t allow a certain number of inches away from your property line, therefore the roof hangs into your property? Why is this a concern? Damage from a neighbor’s property could cause damage to your property.
The folks here will be a terrific resource for endless questions. Before you buy distressed homes, check the following:
Of course, rules and regulations vary from state to state and even in different counties. Make sure to get everything clearly outlined so the inspection is a smooth process at the end!
When reselling a property, just sticking a number on a sign and hoping another party will purchase for that price or above isn’t going to fly. A resale price needs to have justification:
Yes, a real estate agent can determine the best ARV, but an inspector, appraiser, and remodeling contractor are also excellent resources.
“CATCH A WINNER” is the Reel Property Solutions, LLC tag line, especially in the instance of what to offer the seller. Throughout the years of education with Fortune Builders, there is a certain criterion to follow when establishing the offer:
The goal for Reel Property Solutions, LLC is to make an offer that will always pay off the liens PLUS the homeowner in distress will have a bit leftover.
This includes many factors including but not limited to: school districts, main roads, new neighborhoods and much more:
Reel Property Solutions, LLC has seen time and time again when someone will purchase a property for WAY too much thinking the location will sell itself, realize they are in over their heads (and budget), do minimal work, and then TRY to resell for WAY too much again. What happens? Most times the property will sit until the price is dropped multiple times. Sometimes the property won’t sell at all. Location may or may not help to attract a potential buyer, but in the end, a home inspector/appraiser/mortgage lender will make the final calls to approve or deny.
There are some questions to answer about what to do once we buy distressed homes:
Reel Property Solutions, LLC focuses on single family homes, which could be for a specific person if the situation allowed.
To buy distressed homes, this comes with many price tags:
The part people tend to overlook are the holding costs. Even though a property may be held for 6 months or less, there is still a price tag to that part. When someone buys a house for the rest of their life, they do their best to budget the electric bill, taxes, inflation, etc. Short-term holding costs are the same, only on a lesser timeframe.
The biggest reason to buy distressed homes is to renovate to be a better place to live. Here are 4 key points to consider:
Multiple ideas of the end result give flexibility to the renovations, the budget, and think about what will attract the end buyer. For example, if moving walls around to create another bedroom, think about load bearing walls, how doors will open, does the area comply with space requirements, etc.
If something feels weird/not right/not sure why things are happening in a particular manner, trust that feeling!
Not everything will align exactly all the time. However, with bigger items such as the finance source giving uneasy vibes, get to the bottom because remember, after you close and buy distressed homes, that finance source will still be there until the property is resold again and that uneasy vibe may get more intensified.
There are many more tips related to buy distressed homes. Contact firstname.lastname@example.org or call 507-218-8788 or 507-722-1511 for more information. The process of buying homes with various distresses shouldn’t include distress to the buyer. Reel Property Solutions, LLC is here to assist! If there are questions/situations that need more insight, Fortune Builders real estate experts are available for support. Also, a host of other professional networks can be a guide! CATCH A WINNER!