Finance Unexpected Expenses with an Oregon Hard Money Loan
One of the challenges of investing in real estate is learning how to budget. Knowing how – and when – to spend your investment dollars.
Experienced investors understand that unexpected expenses occur after closing any real estate deal, and make sure to budget accordingly.
But in today’s competitive real estate market where housing costs are on the rise, listings are tight, and bidding wars are common, it can be easy to spend beyond your intended purchase price. You may, in the heat of bidding, even agree to waiving a home inspection.
If you’re in the market for a new investment property, beware of challenges that may lie ahead.
Unexpected Costs of a New Property Purchase
According to a recent survey of first-time homeowners, 68% paid over asking price and 36% paid greater than 20% down. More than 80% had unexpected repairs in the first year.
Costs of home repairs ranged from $1000 to $5000, with major repairs or upgrades like plumbing or HVAC systems running between $10,000-$15,000. Many owners felt unprepared to deal with property maintenance.
Research shows that 62% of new property owners have had to deal with unexpected repairs within the first six months of ownership, 77% within the first year.
So what does this mean for you as an investor? Budget carefully. Purchase wisely. And don’t spend all your available cash upfront. If you find yourself in a bidding war, act with care. A home inspection waived now can come at great cost and it will pay, in the long-run, to walk away. The right property will come along!
Our Oregon Direct Private Money Loans are Easy Qualify
If you’re purchasing an investment property or need fast financing for upgrades, an equity-based hard money loan could be the answer. Gregory M. Russell is a trusted Oregon private money lender. Our loans are easy qualify and streamlined. Unlike a traditional loan, if you have available collateral and a plan for repayment, you can have cash in hand in as little as ten days. Your credit and employment history are secondary and paperwork is minimal. Call to learn more or simply complete our loan request form. We’re here to help!