Profiting from a 203K Mortgage

Beverly wanted to purchase a bank owned property, as she was not afraid of doing repairs. She was able to find a 3 bedroom home that she negotiated for $102,500. The bid to do the renovations was $26,340.

When the appraisal is done, two values have to be established, the purchase price and the purchase price with the renovations completed. The finished value appraisal came in at $157,500. The bottom line a great way to create instant equity.

Many local banks and credit unions don’t do FHA 203K loans, which is great for us, as they refer many of these loans to us. Sure they are more work, they take longer and they are a pain for the contractors, but a great opportunity for our clients.

image courtesy of stuart miles/freedigitalphotos.net