One fallout from the current market is the increase in homes being sold As-Is. Either a builder was unable to finish, or maybe the house went back to the bank in less than perfect condition. Either way, you end up with Sellers who don't want to put more cash into the house, they just want to sell it. While there are many more in other parts of the country, we in Wenatchee and all over Eastern Washington are seeing more and more of these.
These are huge opportunities; you will see homes for $150,000 that with $30,000 worth of work would be worth $250,000. Instant equity!
Even though these are great deals, most people walk away because they think they need to be a contractor with all the money in cash. You think you can't get a loan, because most lenders won't let you finance a house 'As-Is'. But there is a solution; you can simply buy the house as as part of a construction loan. When we do a regular construction loan, we are simply adding materials and labor to bare piece of ground; in this case we are just adding materials and labor to some level of existing structure.
Down payments can vary, but once again, I would suggest seeking out a smaller community bank for this type of program.
There are a lot of negatives in the market, one of these distressed properties can be a happy start with lots of equity for someone.
Comments(1)