Learn how to find rehab properties and get the best deals. You can make big money with brand new houses, but don’t underestimate the profit potential of rehabs! You just need to know where to look.
It seems to be “the American way” across the United States. I hear people discussing real estate and how to get rich buying fixer uppers or properties to rehab.
If you are one of those people, you are going to love this article. It ties right in with your conversation.
Today I’ll answer your question about how to find rehab properties and much, much more.
If you’re wondering, “How do I find out about distressed properties in my area?” or “Where can I find houses to flip?” you’ll find them everywhere, and I’ll cover several options in this article.
You’ll discover a highly lucrative market that makes dreams come true, and it’s a ton of hard work.
I’m Ted Thomas, and for decades, I’ve been involved in many different categories and segments of the real estate industry.
I started with single family homes and condominiums, and I grew to 50-unit apartment buildings, 150-unit apartment buildings and mid-rise office buildings located in cities.
Want to learn more about bargain real estate? Would you like to buy homes for pennies on the dollar, and without a mortgage? Or earn outrageous interest rates secured by real estate? Then you don’t want to miss this FREE class.
WHAT IS THE MARKET LIKE FOR REHAB PROPERTIES?
Let’s talk about how to find rehab properties. Not to worry, the United States is filled with projects that need complete overhauls and rehabilitations.
Let’s start our search with the big players, and then we’ll expand it out and look at many different markets.
The American dream is to own real estate, and the contractors traditionally build 5 million new homes annually. That seems to be a big number. However, it’s really a small percent of the growing republic.
REHAB PROPERTIES – A BIG BUSINESS
Simultaneously, real estate brokers recycle a similar amount of properties every year. It seems everyone would like to be a part of this business.
Throughout the country, we have nice neighborhoods, good neighborhoods and some that are not so hot. Depending upon where you live, mother nature takes her toll on many of the real estate properties with rain, snow, ice and wind.
Things just become worn out. Everything requires paint and repairs and so much more. The whole point is rehabilitation of fixers is a big business.
FINDING REHAB PROPERTIES ON HUD
Today I’m answering the question about how to find rehab properties, so let’s get right into it.
The big player with thousands of used and abused properties uses the acronym HUD, which stands for Housing and Urban Development, an agency that was created by the federal government to help homeowners and people who couldn’t afford housing.
HUD owns many properties. These properties have been repossessed because the previous owner failed to pay their mortgage or deed of trust loan. The government created these special loans with low down payments to help newcomers.
HUD has thousands of single-family homes nationwide. It is so well known that most real estate firms will have a complete section provided by the government to sell these single-family homes, and if you are really an investor, 100- and 200-unit properties.
My point is brokers and agents can find you dozens of these properties. The properties have already been foreclosed on and are part of an inventory. Expect them to be structurally sound and in need of rehabilitation.
Many may be purchased with little or no down payment. Unfortunately, the previous owners were not responsible, and they may have damaged the property in addition to not making the payments.
FINDING REHAB PROPERTIES ON ZILLOW AND CRAIGSLIST
Sitting at your computer, you’ll notice Zillow will have “For Sale” listings. All of the properties are not pristine and in good repair.
Zillow will lead to dozens of other websites, which will lead you to dozens of bargains that property owners want to sell in the private market.
Craigslist is filled with offerings. Keep in mind, if you don’t find something today, the list will change tomorrow.
Nationwide in the course of the year, there will be millions of properties, and it will be like trying to find a needle in a haystack.
FINDING REHAB PROPERTIES AT THE DEPT OF VETERANS AFFAIRS
I would suggest checking out the Department of Veterans Affairs. These are properties that the federal government provided military veterans the opportunity to purchase for zero down payment.
Many of the properties were brand-new just built.
The brilliance of this market is the government will provide low-interest financing, so you can use your cash to pay your Home Depot and contractors’ bills when you rehabilitate.
Today I have a gift for you. It will teach you how to get the best bargains in real estate from tax liens and tax deeds, and it’s free. So be sure to take advantage of it. This information is a big game-changer. Don’t miss out!
THE DEPT OF AGRICULTURE
There’s much more. For example, in the rural states, the Department of Agriculture will have repossessed foreclosed upon properties.
You can expect each state will have a program to take care of residents.
Unfortunately, no matter how hard the state tries, they can’t make the new buyers responsible. Although they promise to make payments, they don’t necessarily do so.
Next, I’ll cover a massive market which requires time and effort. However, it’s huge, and it’s in every county in the United States.
The banks make their money selling car loans and real estate loans. A percentage of these loans will go unpaid. The banks must recover the collateral to mitigate their losses on the loans.
In over 3,000 counties across the United States, there will be Sheriff auctions, and in the west, Trustee auctions on the courthouse steps. If the property does not sell on the courthouse steps, it will be awarded to the banker.
The big advantage is these auctions will take place during the week, and they are published in the local newspaper and on county and bank websites.
STARTING BIDS ON FORCLOSURES
All of the above lenders will be taking some type of loss on the property. They won’t always sell the property for pennies on the dollar. However, for the newcomer, they will offer financing which could be the difference between making the deal and not making the deal.
For example, if the property had a value of $200,000, and the bank had loaned $100,000, and the property buyer did not pay the loan, the bank would foreclose.
The foreclosure process requires the bank to repossess the property by first having an auction and allowing anyone to bid. The starting price at the auction will be the amount that is due on the loan.
My point is, you’re not going to steal the property. To further my point, understand that this is a great deal.
This example is a great deal because, as you can easily see, the margin between the purchase price and the market value is generous – $100,000. Keep in mind, this is an example.
So far, we’ve covered government surplus properties and banks’ surplus properties. We’ve covered state and local surplus properties. All of these units will require rehabilitation in some form.
The savvy buyer will spend some time getting educated. What’s available in your market? What’s available in other markets?
TAX DEFAULTED PROPERTY
I’ve been involved in the tax lien certificate and tax deed business for 30 years. The market is huge. Nationwide between 2 and 3 million tax defaulted properties are available annually.
This is a lucrative market because the government foreclosure does not take into account mortgage loans or any loans. The government forecloses based on back taxes, unpaid delinquent property taxes.
STARTING BIDS ON TAX DEFAULTED PROPERTY
The local governments and municipalities begin their auctions with the starting bids at the amount of the delinquent back taxes.
Additionally, the legislature has granted the county officials the ability to wipe out, that is, clean the county records and extinguish liens and mortgages and deeds of trust.
This translates to the new buyer having the ability to purchase a property for just the delinquent back taxes.
Properties are sold to the highest bidder, and many are available for 20 or 30 cents on the dollar with no mortgage.
I have dozens of students who have purchased mortgage-free properties for 6, 7 and 8 cents on the dollar!
So if you want to know how to find rehab properties at bargain basement prices, a tax defaulted auction is a great place to look.
We hope you learned a lot from Ted’s lesson, “How to Find Rehab Properties”
There are multiple venues where you can find and purchase rehab properties. For example, HUD owns many properties that were repossessed because the owners didn’t keep up on the mortgage payments.
Many HUD properties can be purchased with a small or zero down payment, and a real estate agent can help you find them.
The Department of Veterans Affairs also has properties and provides low-interest financing. Additionally, you could try the Department of Agriculture if you’re looking for rural properties to rehab.
Websites like Zillow and Craigslist will have listings of properties for sale, and among them will be good candidates for rehab.
Foreclosure auctions are another good place to look. They occur in counties all across the USA. These properties were seized as collateral by banks because the owners failed to meet their mortgage payments.
At a foreclosure auction, the bidding will begin around the amount of the unpaid mortgage.
Last, but certainly not least, are tax defaulted property auctions. If you want to know how to find rehab properties at bargain basement prices, tax defaulted property auctions are hard to beat.
These properties were seized for nonpayment of property taxes, and the bidding begins around the amount of the back property taxes owed. Additionally, the mortgage is wiped out; it’s deleted from the property.
At a tax defaulted property auction, you can get real estate for 10, 20, or 30 cents on the dollar, and you get the property without a mortgage!
If you’d like to learn how to find rehab properties at the lowest possible prices and sell them quickly, Ted Thomas can show you how.
For over 25 years, Ted’s been teaching students how to do this successfully. Ted Thomas offers full support and a complete training with home study courses, Q&A sessions, live tutorials, workshops & web classes, and personal one-on-one coaching.
Ted is so confident in the system that’s made him and so many of his students wealthy that he wants to give you the opportunity to see it for yourself today for FREE!
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