You have your rehab finished and the most important thing is getting it sold. You have to make sure you find a qualified buyer that will actually be able to buy the property. Our rehab project is in Lauderhill and we completed a the repairs in less than 1 month. A cash buyer is the first choice of buyer on any property because they don’t have to qualify for financing. When you are selling a fully rehabbed property you want to sell the property to an end buyer at the highest price you can. Most end buyers buying a home that they are going to live in don’t purchase it in cash. So you will most likely be selling your rehab project to a buyer with financing.
There are a few different 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.