CREATIVE REAL ESTATE STRATEGIES FOR SELLING PROPERTIES AT FULL PRICE LEX LEVINRAD
property for sale to a first time homebuyer at full
market value. Experienced investors can purchase,
fix and sell one of these houses six months later for
a very nice profit.
The best candidates in today’s
market are
affordable entry level starter homes that are located
in decent neighborhoods – exactly the type of
neighborhoods where first time home buyers shop
for a new home. Based on last year’s US Median
Income of $50,000, most young couples can only
afford a monthly home payment of around $1,200.
In states like New York, California and Hawaii, the
Some renters have good credit and should be able
prices will be higher. The key is to find affordable
to qualify for an FHA loan if they have a FICO
working class neighborhoods where there are
score over 620, are currently employed and can
many homeowners and not many renters. As an
document their income. Many of these potential
example, in South Florida our investors can
first time homebuyers do not have much savings
purchase
and are not able make a large down payment.
property for $15,000 and resell it to an FHA buyer
They are unaware that they can be approved for a
with a mortgage for around $100,000. Executed
mortgage loan and are not familiar with programs
correctly, the profit should be between $20,000 and
like the FHA mortgage, which allows them to put
$25,000.
properties
for
$50,000,
repair
the
down as little as 3.5% for their down payment. As
an investor, the strategy for dealing with these
The challenges with this strategy are the following:
renters is to screen them to see if they would be
good candidates to become first time homebuyers.
•
You need to have pre approved buyers
The best way to do this is to have a good
•
You need to know what the house will appraise for
relationship with a mortgage broker that is
•
An appraisal is needed to get a mortgage
knowledgeable about the FHA program and has
•
Market prices can change while you are
experience working with first time homebuyers.
As
an
investor,
you
can
purchase
repairing the house
deeply
Most novice investors are at the mercy of an
discounted bank owned or short sale properties,
appraiser and are dependent on a real estate agent
using borrowed money from a private lender or
to li