We Buy Ugly Houses! What’s with All the Signs?
Investing in real estate can be a good source of extra income. Home flipping, in particular, is a hot trend these days which continues to draw lots of people wanting to gain huge profits quickly. Flippers normally look for distressed or rundown houses most of which are facing foreclosures. These foreclosures are sold at a low price and are, therefore, bought quickly. The key is to buy cheap homes, fix them a bit and resell them for a profit — that’s how flipping goes.
Real estate investors who have the money target ugly or rundown houses because they believe they can profit more from this kind of property. Perhaps you’ve seen those "we buy ugly houses" signs along the road and other places as well as on the internet. Homes considered ugly have major problems such as foundation, prone to flooding during heavy rains and storms, termite and carpenter ant infestations as well as fire and smoke damage.
Home flippers are constantly on the lookout for owners of ugly houses who want to dispose of their properties fast for various reasons like to avoid foreclosures after missing several monthly mortgage payments or lack of funds to renovate the house. They engage in short sales and many pay cash in buying those ugly homes.
A short sale is a situation wherein the lender accepts payment for the full mortgage but in a lesser amount. This then enables the owner to sell the house at a lower price and pay the loan balance. Short sales usually occur when foreclosures are imminent. In the U.S., foreclosures have been increasing and lenders are more than eager to venture into short sales to dispose of their properties as quickly as possible. The business of lenders is not focused on owning real estate but on loaning money the reason why they want to sell foreclosed homes fast.
Companies engaged in flipping ugly homes also do the renovation works and the reselling of the properties. They have websites where interested home sellers can turn to for more information and discussion of possible sales. Most of them buy ugly houses in any kind of condition by cash since lenders are not bent on approving a loan on a distressed property.
Cash purchases can be done fast and in the simplest manner. Home sellers must be aware though of the standard requirements such as thorough inspections, title research, title policy, appraisals and survey. In addition, investors who buy cash also ask for discounts from the selling price.
Another option home sellers should consider is the installment term which can give them an even higher priced purchase offers and therefore, more money. Through this term, homeowners can choose to initially get a portion of the payment from the investors and then get the remaining balance on a staggered basis such as from six to 12 months.
So if you are selling a home, especially one that is rundown and not worthy for you to upgrade or one which you can no longer afford to pay, you might want to consider getting the services of these companies who buy ugly houses for cash or installment basis. Think deeply about your options and consult a real estate lawyer to guide you in your decision.
Want to Learn more about Flipping Houses? Download the Home Flipping Guide