| Real estate investors know how to make money | | | | Discovering the seller's problem and finding a solution is |
| buying distressed houses. Investors recognize that | | | | the key to buying a bargain property from a seller |
| bargain houses offer the best way to make a return | | | | under pressure. Perhaps the seller needs to close |
| quickly. | | | | quickly; in this case, a buyer ready with financing in |
| Bargain houses also open up a way for first-time | | | | place with a lender who acts fast can make an offer |
| home buyers to buy with little or no savings for a | | | | with a short escrow. Prepare yourself for quick action |
| down payment. If you want to reduce the amount of | | | | by getting your credit and financing in order before you |
| down payment needed to buy a house, get the seller | | | | go home shopping. |
| to pay your closing costs. In a hot seller's market when | | | | How to Buy a Distressed House |
| more buyers compete for the same properties, you | | | | You must understand that a property also needs to |
| either need to increase the purchase price to cover | | | | qualify for financing. Extreme fixers in poor condition |
| your closing costs or find a distressed seller. | | | | don't qualify for a 100% purchase loan. However, |
| A bargain house may be in bad shape or the seller | | | | houses needing only cosmetic upgrades easily pass a |
| may be distressed. Home sellers who suffer from | | | | lender's inspection. If you find a great bargain fixer, |
| problems such as job loss or transfer, divorce, death, | | | | make sure that the house will pass health and safety |
| pending foreclosure, and lack of funds sell fast for less. | | | | codes. Sometimes home buyers will help the seller with |
| Often these sellers offer incentives to the buyer, like | | | | little changes that make a house "loanable." Minor |
| paying the buyer's closing costs. | | | | changes like covering exposed wires with switch plate |
| A distressed house may also be a "doghouse," a | | | | covers, which cost as little as 19 cents, and repairing |
| dump, or a fixer. Owners of fixers are not always | | | | broken windows can make the all the difference in |
| distressed sellers, but they may still feel pressure to | | | | passing inspection. |
| get rid of their problem house. | | | | If you need help with your closing costs, find yourself a |
| How to Find a Distressed Seller | | | | distressed seller under pressure to sell. Not only will |
| Look for listings and advertisements with the words | | | | you get help with funds needed to buy a home, you |
| "make offer," "fixer," "must sell immediately," | | | | might also get a great purchase price and be on your |
| "handyman's special," "divorce," "owner transferred," | | | | way to making your future investing in real estate. |
| and "owner help with closing costs." If you see two or | | | | Copyright (c) 2005 Jeanette J. Fisher-All Rights |
| three of these clues, you know you've found an | | | | Reserved. |
| anxious seller. | | | | |