Jan. 19, 2014
By Dave Halpern, Realtor, (502) 894-9194
Many home buyers want to take advantage of cheap foreclosures and cheap interest rates. Intuitively they know they can get a good house at a good price, fix it up and have instant equity.
The main questions are:
How do I find the deals in Louisville?
How do I know that it’s a deal?
Will a bank in Louisville lend me money to buy a fixer-upper?
After I get the loan to buy the house I won’t have the cash on hand to pay for the renovation. How can I get renovation money?
Well the good news is it’s not easy! Why is that good news? Because if it were simple everyone in Louisville would do it and there wouldn’t be enough opportunity left for you.
How do I find the deals?
You can try to scout out the deals on public websites. But to really get plugged into the cheap foreclosures you need to work with a Louisville area Realtor who understands the foreclosure market. Keep in mind, when you are buying a house you are not the one paying the Realtor’s commission. The seller is paying the Realtor’s commission. It does not cost you a penny to put a professional Realtor on your side dedicated to helping you find the deal.
How do I know that it is a deal?
Same answer as the first question. You need to work with a Realtor who understands the Louisville market. You need a professional Realtor who will understand the after-repair-value of the house. The Realtor should have the ability to look at the fixer-upper and know what the end result can be. You want a Realtor who understands renovations and can speak contractor language and understand your vision for the project.
Will the bank lend me money to buy a fixer-upper?
Most lenders will not, but some lenders in Louisville will. How do you find those lenders? I’m starting to sound like a broken record, but, the answer is going to sound familiar. You need to work with a professional real estate agent who understands the renovation market and has actual experience with local or national lenders who lend money on fixer-uppers right here in Louisville and surrounding counties of Oldham, Shelby, Spencer and Bullitt. Your Realtor will be able to suggest several specialized lenders. You are also encouraged to research lenders on your own, as well, and compare rates, terms and conditions.
How do you get money for the renovation?
There are several programs available that enable buyers to borrow both the purchase money and the renovation money. The FHA 203K renovation loan is an example. They lend you the money to buy the house and set aside the extra money you need to get the house renovated. Again, you need the involvement of the professional Realtor who understands the program and the process and who can connect you with loan officers who specialize in renovation loans.
This whole process becomes very easy when you have the right professionals on your side.
Find a Louisville fixer-upper, get the money to fix it up, get it fixed up, have instant equity and a happy ending.
To get more information about buying foreclosures fixer-uppers in the Louisville Kentucky area call Dave Halpern, Realtor, with Keller Williams Realty Louisville East. Office telephone (502) 894-9194, direct line (502) 664-7827. Dave has helped many buyers and sellers in Louisville and surrounding counties. Foreclosures, fixer uppers and short sales are everywhere. Let Dave help you. Come visit at www.DaveHalpernRealEstateAgents.com