Have Your Financing Ready with a Washington Hard Money Loan
As the pandemic eases, the housing market is feeling its continued impact.
Foreclosures jumped a stunning 700% at the start of 2022 and have steadily risen following the expiration of moratorium protections.
With a backlog of loans previously in forbearance yet to be dealt with and consumers tightening belts in response to growing inflation, foreclosures will likely increase for some time to come.
Though they are unfortunate, foreclosures also offer investment opportunities. So it’s a welcome trend for real estate investors who have dealt with limited listings and stiff competition over the past couple of years.
When is a foreclosed property worth purchasing for investment? Here’s what to look out for and when you may have a good deal.
The ABCs of Investing in Foreclosures
A foreclosure occurs when a borrower stops making mortgage payments and the lender seizes and sells the property. Foreclosures offer investors the ability to buy real estate at prices 10-40% below market value, and can be great fix and flip or rental investments depending on their condition.
When is a foreclosed property a good real estate investment value?
You’ll find foreclosed homes that have been partially renovated, have fallen into disrepair, have liens on them due to unpaid HOA dues or property taxes, or have been stripped or left damaged by unhappy former owners. However, you can also find the occasional foreclosed property in reasonable shape.
Damage and lack of upkeep are top concerns with a foreclosure, and they are often sold as-is. So it’s important to know what you’re getting:
- Be sure to walk through any foreclosure you’re interested in.
- Hire a qualified inspector to look for potential issues.
- Research property taxes, title, permits, and possible liens or judgments on the property.
- Secure funding in advance and include a contingency in your budget for the unexpected.
It takes careful evaluation to decide if a foreclosure is the right fit for your personal investment scenario. Foreclosed properties may seem like a great deal upfront but can require unanticipated money, patience, and commitment from the buyer, depending on the property, its condition, and the former owner’s story.
If all checks out, congratulations! You are prepared to make an informed offer on a foreclosure and have ensured a solid return on your investment.
Our Washington Hard Money Lenders Provide Easy Foreclosure Financing
One thing you can always trust in on your real estate investment journey is hard money lender Gregory M. Russell. We provide you with the fast financing you need to purchase foreclosed investment properties without hassle. We’re a top-rated Washington private money lender, and our streamlined asset-based hard money loans are a great financing option for fix and flips or rental properties. So let us help you build your real estate portfolio. Just call 1-888-477-0444 or fill out our online loan request form.
Thanks so much for taking the time to read our blog. We have enjoyed bringing our shared experience in private money lending and the real estate industry to our work with investors throughout the Northwest for over three decades. We live in beautiful Southern Oregon, but consider Washington and Idaho, where we also provide our hard money loan services, our second homes!
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Greg & Rachel
Gregory M. Russell Hard Money Lender
