:help I’d like to take the plunge into the real estate game. There is a home in a great neighborhood where the owner filed for chapter 13 bankruptcy. A friend and I went into the house to check it out and it seems the owners decided to do a little damaged before they left. I want to purchase this home but I’m in the middle of a divorce and I don’t have the money. I need advice on where to start and how to find financing for this project. :help
When you say “plunge into the real estate game” do you mean for yourself to live in? Or do you mean as an investment property? If you plan to occupy it yourself then not having liquid funds is not necessarily a deal killer. There are many first time home buyer products that do not require reserves. However it is always wise to have a little money put away for emergencies. Now if you meant to buy it as an investment property then you will most likely need at least two months reserves minimum. Also, if you do not live in a state that has community property laws then the fact that you are in a divorce is not an issue. If you happen to live in Texas or one of the handful of community property states then I would advise you to wait until your divorce is final. Otherwise your husband will have to go on title and legally own half your house.
Thank you for the response Christopher :smile. I currently own a home. When I say “plunge into the real estate game” I mean investment property. The home I’m interested in is in great shape minus the holes and broken windows due to the previous owners. I really feel this would be a great opportunity to begin my new endeavor. I DO NOT want to use my own cash for this project and I would like to know how can I find private lenders or investors in my area or just period? Also this home was placed under bankruptcy and the owners moved out a few months ago. My goal is to fix this property within two weeks after ownership and place it back on the market. What should I do to ensure I get the best deal on this property ASAP.
Because you plan to flip the property so quickly it would probably be best for you to get a hard money loan. This will allow you to finance the purchase of the home, all of the closing costs, and the repairs all in one loan. The fees and interest rate may be a bit high, but for this type of transaction it seems to be the easiest and quickest solution. Hope this helps.
Good Morning Jolie,
Are you able to talk with the owners of the house ? It is possible with help from the owners and their lawyer to remove the home from bankruptcy. This could take as long as a month and you would be buying it for what they owed. If that purchase price makes financial sence it may be worth proceeding. You can then buy sub 2. Yes you may need to give the sellers some incentive to work with you and you will need to do the talking with their lawyer. Its a journey… Maybe worth it.