I Want a Fixer!!!
There are not too many buyers these days - or ever, I guess - looking for fixers or fixer-uppers as they are called by the not verbally lazy. Typically fixers are homes that need more than just carpet and paint. These are the truly sweat-equity homes where entire walls needs replacing, have mold problems, termite problems or the foundation or floor is not level. Sometimes the homes needing just carpet and paint are labeled “cosmetic fixers” and you can get these at discounted prices as well, just not as deeply discounted as the “real” fixers.
So what are the conditions under which you may be able to buy these deeply discounted big fixers? For one, they are usually bank-owned. The property owners have probably had a history of non-payment of their mortgage due to financial problems and the property will reflect that. Keep in mind however that the bank has no legal requirements to tell you all that is wrong with the home - they might not know. So get your inspections done thoroughly.
Another deterrent most buyers have (hence the low price) is that it is almost impossible to get a mortgage to buy one of these fixers, unless it is a construction loan. So it is imperative that you have cash to complete the purchase.
Big fixers have some pretty good potential for the savvy investor, but you must research them well and make sure you are getting a good deal and also plan your escape route. If they are deeply discounted, you could buy one, fix it up and sell it or rent it out. But do your homework!
