Landisville, PA · Member since 2014 · 25 posts · 4 votes
Help! I need recommendations. I'm interested in purchasing a FORECLOSURE property that was just listed in my area to use as a Rental Property OR Flip. Is there an easy way to get Cash Back at Closing to help with some of the repairs? I don't need much.... just 10K.
Real Estate Broker & Investor · Chicago, IL · Member since 2015 · 68 posts · 19 votes
11y
Most likely the bank is not going to give you money back since they are already losing money on the foreclosure. And conventional loans only loan up to 80-85% of the LTV for investment properties. I would suggest looking into FHA 203k loan and hard money lender. Both you can get money for the purchase and then have money for the rehab. Another option is to get a home improvement line of credit for the rehab portion, which would be separate from your purchase loan.
Landisville, PA · Member since 2014 · 25 posts · 4 votes
11y
I can't go FHA 203k because it's not my primary residence... I believe FHA is only primary resident.
Great idea with the Home Improvement line of credit. Any idea how long I would have to wait before I could get a HELOC? Is a HELOC and a Home Improvement Equity Linenof Credit the same thing?
Lender · Kirkland, WA · Member since 2015 · 27 posts · 9 votes
11y
Banks that are governed by Fannie and Freddie aren't going to loan on a foreclosure, you need to find a hard money lender in your area that can help you procure the property at the auction.
Investor · FL · Member since 2015 · 54 posts · 22 votes
11y
Hi Bernie,
First time investing is an exciting thing. Most hard money lenders will offer rehab in fund control, they typically need the borrower to have 20-30% skin in the game however, if you can do this thats a great option. A line of credit is good as well if you can secure the property in a different manner.
Landisville, PA · Member since 2014 · 25 posts · 4 votes
11y
Thanks Kevin.
Its already been through the foreclosure process and is currently bank owned. Its not going to be auctioned again. The bank has it listed for sale. That should make things simpler...right? bernie
Banks that are governed by Fannie and Freddie aren't going to loan on a foreclosure, you need to find a hard money lender in your area that can help you procure the property at the auction.
Lender · Kirkland, WA · Member since 2015 · 27 posts · 9 votes
11y
Yeah Bernie, unfortunately after no one bids on it and it reverts back to the bank, you just have to wait until they release it as an REO (real estate owned/bank owned.) It is easier at that time because you can buy with conventional lending but the time frame is always different as far as when it will become available on the MLS. Good luck Bernie