Posted by Steve-Atl on December 10, 1999 at 08:15:50:
Often the problem with bank owned property is they want retail value for it. Your key is buying it cheap enough (50% to 60% of after repair value ARV). I’ve found this very hard to overcome. The best I’ve been able to do is 80% with a bank.
“Hard money” loans are available if you could buy it cheap. Otherwise, you might consider getting a partner with good credit. If you can buy it at say 80%, then get your partner to get a loan, you could sell it with owner finaincing or lease option for 110% of ARV. Not a bad spread, but you must be willing to wait on the sale for all of your money.
Banks don’t usually offer financing on house that have been foreclosed (don’t ask why - I think they believe if it came back once, it might come back again) They want to sell it, not finance it.
Good luck