finding & financing fixer-upper bargains

© 2013 Renwood RealtyTrac LLC

Finding & Financing Fixer-Upper Bargains

WHAT WE’LL COVER TODAY

• How to find potential fixer-uppers– REO, pre-foreclosure, vacant pre-foreclosure, for sale– Don’t forget the home you live in!

• The renovation loan that is real estate’s best-kept secret– Basic features of the loan– Opportunities to use the loan– What buyers and properties qualify

• Resources to take action• Q&A

© 2013 Renwood RealtyTrac LLC

FINDING FIXER-UPPER BARGAINS: OLDER REO INVENTORY

© 2013 Renwood RealtyTrac LLC

FINDING FIXER-UPPER BARGAINS: OLDER REO INVENTORY

© 2013 Renwood RealtyTrac LLC

FINDING FIXER-UPPER BARGAINS: VACANT PRE-FORECLOSURES

© 2013 Renwood RealtyTrac LLC

FINDING FIXER-UPPER BARGAINS: VACANT PRE-FORECLOSURES

© 2013 Renwood RealtyTrac LLC

FINDING FIXER-UPPER BARGAINS: VACANT PRE-FORECLOSURES

© 2013 Renwood RealtyTrac LLC

FINDING FIXER-UPPER BARGAINS: FOR-SALE HOMES

© 2013 Renwood RealtyTrac LLC

FINDING FIXER-UPPER OPPORTUNITIES: YOUR OWN HOME!

© 2013 Renwood RealtyTrac LLC

“REAL ESTATE’S BEST KEPT SECRET”

FHA 203K FEATURES

Funds for purchase or refinance & renovation

© 2013 Renwood RealtyTrac LLC

FHA 203K FEATURES

3½% down payment

– Can be gifted

- Assumable

© 2013 Renwood RealtyTrac LLC

FHA 203K FEATURES

Easier qualification

– Less than perfect credit

– Higher ratios

© 2013 Renwood RealtyTrac LLC

FHA 203K FEATURES

FHA loan limits

- $271,000 to $729,750

© 2013 Renwood RealtyTrac LLC

FHA 203K FEATURES

Owner-occupants & non-profits

© 2013 Renwood RealtyTrac LLC

FHA 203K FEATURES

1 to 4 unit & mixed use buildings

© 2013 Renwood RealtyTrac LLC

FHA 203K FEATURES

Standard & Streamline versions

© 2013 Renwood RealtyTrac LLC

GREAT OPPORTUNITIES FOR TODAY

© 2013 Renwood RealtyTrac LLC

OPPORTUNITIES FOR TODAY

Distressed properties – need renovation!

© 2013 Renwood RealtyTrac LLC

OPPORTUNITIES FOR TODAY

85% U.S. homes 20yrs or older

© 2013 Renwood RealtyTrac LLC

OPPORTUNITIES FOR TODAY

Need repairs for FHA financing

© 2013 Renwood RealtyTrac LLC

REAL-LIFE EXAMPLE : $33K IN CLEVELAND’S SHAKER HEIGHTS

© 2013 Renwood RealtyTrac LLC

REAL-LIFE EXAMPLE: 510K IN SOCAL’S COSTA MESA

© 2013 Renwood RealtyTrac LLC

As-Is Sales Price: $450,000

Property Condition/Issues:• Missing kitchen appliances• Missing portions flooring throughout house• Needed electrical and drywall repairs

Total Renovation Costs: $35,000

Purchase Price (As-Is): $450,000Total Renovation Costs: $35,000Total Cost: $485,000FHA 203k Base Loan Amt. (96.5% LTV): $468,025Down Payment (3.5% of Total Cost): $16,975After-Renovated Value: $620,000

Renovation Financing - FHA 203k

ACTUAL FHA 203K EXAMPLE

© 2013 Renwood RealtyTrac LLC

SOLUTIONS FOR TODAY

Conventional financing unavailable

© 2013 Renwood RealtyTrac LLC

SOLUTIONS FOR TODAY

Great deals for millions of Buyers

© 2013 Renwood RealtyTrac LLC

WHO ARE 203K BUYERS?

© 2013 Renwood RealtyTrac LLC

203K BUYERS

First time buyers

© 2013 Renwood RealtyTrac LLC

203K BUYERS

Move-up & move-down

© 2013 Renwood RealtyTrac LLC

203K BUYERS

Urban location

close to work

shopping

entertainment

© 2013 Renwood RealtyTrac LLC

REAL-LIFE EXAMPLE: 183K CONDO IN DOWNTOWN CHARLESTON

© 2013 Renwood RealtyTrac LLC

203K BUYERS

Changing needs family, home office

© 2013 Renwood RealtyTrac LLC

203K BUYERS

Looking for discounts, sweat-equity

© 2013 Renwood RealtyTrac LLC

203K BUYERS

Occupant investors – 1 to 4 units

© 2013 Renwood RealtyTrac LLC

© 2013 Renwood RealtyTrac LLC

203K BUYERS

Smart buyers!

© 2013 Renwood RealtyTrac LLC

RESOURCES TO TAKE ACTION

© 2013 Renwood RealtyTrac LLC

1. RealtyTrac 203k Loan Resource Center: www.realtytrac.com/203k

• Much more details on the loan• Find a local 203k loan specialist• Cool infographic on how 203k works

2. Search for homes: www.realtytrac.com