Financing For Cheap Foreclosures in San Diego
Trying to find financing for cheap foreclosures in San Diego can be far more challenging than most real estate investors realize. Why is this, and what alternative solutions are available?
There is a plethora of cheap foreclosures in San Diego expected to come to the market, attracting many real estate investors. Some foreclosures may provide big values for savvy investors. However, some don’t qualify for conventional mortgage loans due to their poor condition. Others don’t qualify because of small loan sizes.
Many mortgage lenders won’t accept low loan amounts or don’t want to. The ROI for the labor in the long run is low and the upfront earnings are capped to prevent predatory lending problems.
For borrowers, many of the traditional lending fees are static and make up a much higher percentage of the deal than on larger and more expensive properties.
So how can real estate investors overcome these issues and find cheap foreclosures in San Diego?
They can look for better homes in neighborhoods like the properties CT Homes, LLC has recently renovated. Subsequently, they are ready to rent for buy and hold real estate investing in San Diego, California and Connecticut.
However, for those really stuck on cheap foreclosures in San Diego, there are a few other options for finding money to finance them.
Those with current portfolios could approach a commercial lender for a blanket mortgage to tap into equity and take out a bigger loan. Real estate investors buying multiple properties at once can use similar loan structures, especially if they find package deals to acquire.
Others can turn to lines of credit, business loans and even private mortgage lenders that could potentially offer easier borrowing.