Getting the rehab finished is only half the battle. Now you have to make sure you find a buyer that is qualified and will actually be able to buy the property. We have a property in Lauderhill that we completed a rehab on in less than a month. So now we need to find a buyer. When you are looking for a buyer on a property of course the first choice is that they are paying cash. However, when you are selling a fully rehabbed property you want to sell at as highest price as possible. Not to mention that most end buyers purchasing a house that they are going to live in don’t pay in cash. So you will most likely sell your rehab project to a buyer with financing.
There are several options when it comes to financing. First, there are people that qualify as First Time Home buyers. Those are called FHA loans. They have the lowest required down payment as the borrower in most cases has a lower income. These loans are harder to get qualified to purchase the property and require two appraisals. These loans also require 90 day seasoning, which means the property has to have been purchased by the investor 90 days before the FHA buyer enters into contract to purchase. The more popular loan is called a Conventional Loan. These buyers have more of a down payment and can pay more for their closing costs. These buyers generally pay a little more for the property and these loans are much easier to get qualified. In this episode Ryan will talk about all of these loans and what measures you need to take to make sure you have a qualified buyer for your rehab.