Help for REAL ESTATE INVESTORS Looking to Flip Homes

Federal Housing Administration is changing what is known as the “anti-flipping rule” to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, says FHA Commissioner David H. Stevens.  Beginning Feb. 1, 2010, the Federal Housing Administration will provide mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.  This is great news for investors that want to rehab a home and sell it to a buyer that wants to receive the Homebuyer Tax Credit before it expires on April 30, 2010 (view this link, http://www.marealtor.com/content/Homebuyer_Tax_Credit.htm, for more details on the tax credit).

How to Avoid a Real Estate Money Pit

Okay, maybe I am telling my age but do you remember the hilarious 1980s comedy, The Money Pit, starring Tom Hanks and Shelley Long?  How outrageous that movie seemed with them falling through floors and having their entire marriage end because of a real estate purchase that was not properly investigated.  But in today’s market, with foreclosures galore, Buyer’s are running (rightfully so) to snap up homes at these great prices but the Latin phrase caveat emptor still holds true now more than ever… Buyer, beware!

BUYING FORECLOSURES - Tips in this Market

1. Be willing to drive various neighborhoods before involving a real estate agent

You will get the most benefit out of the relationship with your agent if you have already driven various communities and have pinpointed what neighborhood you desire to live or invest in.  In this market, there are thousands of foreclosures available (unfortunately for the previous owners) so one of the best ways to narrow your prospects and save your time is to determine first what neighborhood you desire to purchase in.