How to Finance a Foreclosure Property

How to finance a foreclosure properties that you located and want to purchase now!

With the amount of bank owned properties on the rise and prices coming down you might have come across a property or two that you want to purchase for investment.

Difficulty: Moderate

Instructions

Things You'll Need:

• know your credit score
• know the estimated costs to repair the property
• know how much money you have to invest
• know what the property will resell for or rent for

1. Know how much money you will need to purchase and renovate the property. Keep in mind all the soft costs, legal, title, insurance and all the unforeseeables. Usually when you purchase bank owned properties they need to be repaired and sometimes they need to be gutted and completly renovated.

2. Know the carrying costs and holding costs for the property. While you are renovating the property and until you rent it or resell it you will need to pay the monthly carring costs. Meaning the monthly mortgage payment, real estate taxes, insurance and any other related monthly costs. Such as landscaping, alarm monoriting etc.

3. Know your credit score! Whomever you get the loan from either a commercial bank, private investor or hard money lender, they will want you to have good credit so they know you will be responsible and can afford to make the payments.

Tips & Warnings

• always have an enviroment company check the property for underground oil tanks, lead paint and asbestos so you do not run into more costs after you buy the property.

Resources

• Learn to buy foreclosures