Real Estate by Debbie Reynolds: How to Get Money to Buy a Foreclosed Investment Home

How to Get Money to Buy a Foreclosed Investment Home

How to Get Money to Buy a Foreclosed Investment Home in Clarksville

Foreclosed Home in ClarksvilleYou need to decide if you are keeping the house to use as a rental or buying it to flip or resell. Choosing a Clarksville real estate agent that knows the ins and outs of working with foreclosed homes is the most important first step.

An experienced agent can help guide you in the many options of financing and which properties will qualify for each type. Not all foreclosed properties are able to get funding. Many are in need of major repairs and traditional secondary market financing just will not work. If the property qualifies for an investor loan through Fannie Mae the buyer may be required to have as much as 20 to 25% off the value for a cash downpayment.

Another source for money is to approach your bank and ask for in-bank financing. This will be more like a commercial type loan and the bank will have shorter pay back terms. They reserve these type loans for their strong customers but I have had many clients that have used these loans time and time again. It is a whole lot easier to qualify and the closing is much faster than typical secondary market mortgage financing. This works well when you intend to flip the property.

If you have a substantial amount of equity in your current home, you may be able to borrow against it and produce ready cash to make a cash purchase. This type of loan is often referred to as Home Equity Line of Credit (HELOC). You are leverage your equity to be able to purchase your foreclosed investment home in Clarksville and can either flip the home or keep it to rent out allowing the rental payments to pay back the Equity Line on your current home.

Of course you could have liquid cash, sell stocks or mutual funds, borrow cash against an insurance policy or borrow against your IRA accounts. If you choose the latter you will have to follow strict requirements so you will not suffer IRS penalties of early withdrawal.

There are hard money loan companies that operate more loosely when lending money but you will pay more interest, fees and points to borrow the money. You could also find a private investor that is willing to take the risk of lending you the money. Sometimes getting a partner to invest with you can be the answer.

These are the ways to get money to buy a foreclosed investment home in Clarksville. I highly recommend you start with choosing the right agent. I have sold these kinds of properties for 25 years and can help you take the right steps.

If you are ready to start your search for a foreclosed investment home in Clarksville then contact Debbie Reynolds, Realtor at 931-920-6730. 

 

 

Want To Know What Debbie Has to Say? 

If you are needing Real Estate services in Clarksville TN it would be my pleasure to assist you!

 

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"The Real Debbie Reynolds" at
BuyorSellClarksville.com

Prudential PenFed Realty, 2503 Wilma Rudolph Blvd., Clarksville, TN 37040

An independently owned and operated member of BRER Affiliated, Inc.

Not affiliated with Prudential. Prudential watermarks used under license.

931-920-6730 (office)   931-320-6730 (cell)

                 

 

 

 

26 commentsDebbie Reynolds • September 12 2013 06:21PM

Comments

Debbie, this is an important post for buyers to read...there is money with USDA & 203k loans that can work for many buyers...talk to your Realtor or your mortgage lender!

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate) about 1 year ago

For 203K and USDA, I think you have to live in them. Investment homes have harder, more restrictive requirements at least in Clarksville.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730) about 1 year ago

Great post Debbie. I just did a deal today on a Fannie Mae foreclosure. We had an easy time, a cash buyer. The best to you in your Clarksville properties.

Posted by Noah Seidenberg, Chicago-land and its Suburbs (800) 858-7917 (Coldwell Banker) about 1 year ago

Hi Debbie - it's like matchmaking isn't it?   Finding the right property and the right financing(or maybe it needs to be all cash)have to be in the right alignment.   That's why it's important to make sure the right REALTOR like you in Clarksville TN is so important.   

Posted by Michael Jacobs, PasadenaCA Real Estate Representation 818.516.4393 (Coldwell Banker Residential Brokerage) about 1 year ago

Noah, I have some many Fannie properties. Buyers can get some great deals.

Michael, So true. You need to be able to guide the buyer to the right property and the right financing.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730) about 1 year ago

Debbie,

You've done a great job of explaining some of the different options that a buyer could use to buy an investment property. 

 

Posted by Sondra Meyer:, See It. Experience It. Live It. (Star View Real Estate) about 1 year ago

yes it is certainly good to know the condition and intentions of the home to decide the right loan for you. 

Posted by Kevin B. Tolbert PA Team, New Home Construction and Luxury Specialist! (Keller Williams Realty of Port Saint Lucie) about 1 year ago

Excellent information Debbie.  You just keep knocking them out of the ball park!

Posted by John McCormack, AlbuquerqueHomes.com, Albuquerque Homes Realty (Albuquerque Homes Realty * www.AlbuquerqueHomes.com) about 1 year ago

Great information Debbie, the financing can be the most difficult part.

Posted by Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366, General Contractor, Dry Rot and Water Damage (Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366) about 1 year ago

Debbie you did an excellent job of covering a difficult topic, and provided valuable advice.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut) about 1 year ago

Debbie great advice and that is the difference being new or being in the Business for many years!, Endre

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) about 1 year ago

Debbie ~ Anyone looking for a Clarksville TN foreclosure needs to see The Real Debbie Reynolds to help guide them through the process.  With 25 years of experience, you're the top local real estate expert!

Posted by Maureen Bray Portland OR Home Stager ~ Room Solutions Staging, "Staging that Sells Portland Homes" (Room Solutions Staging, Portland OR) about 1 year ago

Hi Debbie.  Wannabe investors have to establish a relationship with a local bank.  They are the best to work with.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) about 1 year ago

Debbie, A Realtor who can candidly assess the risk level a buyer can endure, can offer the best advice on how to proceed. In your area, you get my vote! Enjoy your day!

Posted by Wayne Martin, Sales Manager - New Homes & Condominiums Division (Michael Saunders & Company) about 1 year ago

Hi Debbie, those are many helpful tips to finding money to buy a foreclosure or any other investment for that matter. Debbie I just have to say you are a wealth of knowledge and very much an asset to Clarksville TN and your AR family.............thanks.

Posted by Bob Ratliff, Broker Associate - REALTOR® 512-587-5689, Your Cedar Park Real Estate Consultant, REALTOR® (RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR®) about 1 year ago

We are matchmakers when it comes to properties and financing. Teaming with a good bank or lender is also crucial in making the sale work. Thank you all for your comments and feedback.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730) about 1 year ago

Debbie,  all terrific advice on how to finance a forclosure.  Good post.

Posted by Chris and Dick Dovorany, Broker/Associate at Premiere Plus Realty ( Homes for Sale in Naples, Bonita Springs and Estero, Florida) about 1 year ago

Debbie, great advice for those out there wanting to take advantage of the favorable market conditions to snap up some good deals!

Posted by Matt Kombrink, Top Local Realtor, Trusted Advisor (RE/MAX Great American North) about 1 year ago

Foreclosures continue to be a great investment but it is a must they bought correctly. having an experienced agent on your side can sure help. have a great Friday.

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) about 1 year ago

Debbie - Great job getting this information out to investors for the Clarksville, TN area. 

Posted by Carla Freund, Raleigh - Cary Relocation & Luxury Home Specialist (Keller Williams Preferred Realty) about 1 year ago

Debbie, many investors would love to find in-house monies to use to purchase their rental units.  Great information!

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) about 1 year ago

Great post Debbie. Most of the time its harder to get the money but it can definitely be done. 

Posted by Marc McMaster, Putting my clients before myself (RE/MAX Centre Realty) about 1 year ago

yes to this post and assembling a team with an agent to strategize...good one here

Posted by Richie Alan Naggar Author PEARLS SERIES of books, on LIFE and LOVE plus Real Estate too! (People first then business! Ran Right Realty Riverside, Ca) about 1 year ago

Anyone looking to buy a foreclosed investment property would be wise to choose you as their agent Debbie. You've been in the business a long time and know all the ins and outs!

Posted by Suzanne Otto, Your Montgomery County PA home stager (Six Twenty Designs) about 1 year ago

Debbie - The folks in Clarksville clearly have one of the best Real Estate Agents in the business at their disposal. As always, excellent post! 

Posted by Jeffrey Stevens, Jeffrey Stevens Realtor®/Associate Broker (Keller Williams Realty) about 1 year ago

Great suggestions for people needing alternate financing for investment purposes.

Posted by Jill Winchel about 1 year ago

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