Rehab-real-estate.com: Property Choices For Rehabbing A House
So youve decided that you will be rehabbing a house for extra income. Not a bad choice. A lot of people are making money from this business today. Some of them have even turned into full-time house rehabbers. Now your minds made up, its time to look for properties to fix and flip. Just what kinds of houses can you rehab?
Basically, you can fix and flip any kind of property. However, there are those that are preferred by investors because they are cheaper. As they say, you earn money when you buy a property, not when you sell it. First of these cheap houses are called REOs, or real estate owned properties.
REOs are properties repossessed from owners who failed to fulfill mortgage or pay other financial obligations. Also known as bank owned homes, these are literally owned by banks and other lenders. They are cheap because they have already undergone the foreclosure process. That means all liens and claims against them are already cleared. These are perfect for rehabbing a house.
Besides that, banks have no choice but to let go of these non-performing assets at bargain prices. REOs are filling bank inventories and this is bad news for lenders. First of all, they are n the financial sector so they must not have anything to do real estate. They face possible sanctions from regulators if they maintain these properties. Even if they opt to, they just wouldnt be able to maintain all of them because of the costs. It is a wiser move is banks sell them at very low prices. They would rather earn a little profit than continue sustaining losses because of REOs.
Fixer upper homes will also qualify for rehabbing a house. These are properties that are selling low because they are in disrepair. Some of these properties have been neglected by their owners for years. Others just need a new coat of paint and a few patches on the roof.
There are scores of fixer upper homes across the country. A lot of people are selling their property because they could not fund that repairs it requires. A lot would want to sell their property in a good condition but because they are struggling financially, they opt to sell their house as is. Whats important when buying fixer upper homes is that they do not require major repairs such as a total roof replacement or a foundation correction. These could cost you a fortune.
Rehabbing a house starts with finding the right properties. Learn more about this topic at rehab-real-estate.com today.
by: Daniel Mc GreyAbout the Author:Rehab Real Estate is your perfect guide to the exciting and lucrative world of real estate investing. Whether you're into rehabbing houses, property investment buying, or fix and flip, we'll teach you everything you need to know so that you'll earn MAXIMUM PROFIT in each and every deal.