“Beer Budget and Champagne Taste”
“Beer Budget and Champagne Taste”
Brenda wanted to own a nice three bedroom ranch, but her budget was $150,000. In the area she wanted to live $150,000 wouldn’t give her what she wanted for her family.
Her Realtor called me regarding doing an FHA 203 K loan as the bank that did her pre-qualification doesn’t do them and they recommended the Realtor contact me. They have been referring these clients to me for many years.
I spent time with Brenda to discuss her options as she and her Realtor found a bank owned property that was in the area she wanted, but the home needed about $25,000 worth of work. With that amount of renovations the home would work.
The Realtor referred a contractor that looked at the property, but he felt the property was too far away for him, plus he had lots of work. I ended up referring a contractor who viewed the property and put a proposal together. For these loans, the contractor is crucial as there is a bunch of paperwork that is required.
Here is the neat part of this transaction. The appraiser has to come up with an “as is” value and a value after the renovations are completed. The purchase price was $109,000 and the final renovation number was $30, 800. The after renovation value came in at $166,000. What a way to create instant equity.
Buying a home that needs some renovations, might be a great option, no matter the price range goals someone has.
Image courtesy of StuartMiles/frredigitalphotos.net
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Email: joe@righttracfg.com
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.
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