Foreclosure Viewing Instructions: Remove the Front Door Yourself!

Most experienced real estate investors and rehabbers have figured out a way to bypass being accompanied by a real estate agent when viewing vacant homes including bank owned properties.  Some investors have real estate agent friends that get the lockbox combos for them, while others sweet talk or persuade the listing brokers into offering up the combos.  This may not be legal in some cases, but it is a fact in our business.  Some agents listing vacant properties including REO’s, will actually instruct investors to bring a power drill with them to remove the front door to gain access to the house as long as the door is screwed shut upon leaving.  This is understandable given the number of real estate investors just kicking the tires and rarely ever buying anything.

Viewing… Read the rest

Short-Term Loans

A hard money lender makes short-term loans based on the value of an asset, in this case a property, with little regard to the borrower’s credit and/or finances.  Hard money lenders charge higher interest rates than standard banks due to the high risk nature of these loans.  Unlike traditional banks, hard money lenders can provide funds quickly, usually in 10-14 days, to purchase and rehab distressed properties.  These properties can be in need of significant repairs or be in various stages of foreclosure. This makes these loans popular with first time real estate investors that have little working capital or poor credit scores.  Look to use hard money loans to rehab foreclosures as your means to purchase and rehab your first couple properties.

Rehabber Loans

Hard money lenders will only provide loan terms of 4 – 6 months at… Read the rest

Roof

A cheap and effective roofing rehab choice can be the use of roll roofing.  This choice is better suited for homes with steeply pitched roofs.  Instead of shingles, this roofing choice is rolled onto the roof and stapled in place.  This choice is cost effective and reliable if installed correctly.  Now it does not look as nice as a shingled roof, but we have not had any difficulty renting out homes because of this.  The appraisal was not effected either.

Another option is to add another layer of shingles to the roof depending on what the local building code allows.  If the roof is very old there is a good chance that the plywood will have to be replaced also.  Analyze the roof carefully because there is ~ $4,500 difference between a full tear off and replacement versus just… Read the rest