The last six months have been particularly difficult for many Houston residents. Following Hurricane Harvey, a large number of families continue to be displaced due to flooded homes that aren’t covered by flood insurance or are otherwise destroyed to the point where they are unable to be repaired. Housing remains an issue in a city of nearly 3 million people, yet there are still some options for those that continue to own the property but can’t live in it.
How Real Estate Investors Affect The Market
When a homeowner can’t afford to do the repairs on their own, they may attempt to get a loan. However, banks love making loans as long as there’s no risk. If there’s a chance that the loan might be given and the home never gets finished due to low budget or the homeowner just runs off with it, then they’re unlikely to actually approve it. That’s why mortgages are so easy to attain — they are based on a home that is there and can be verified that it’s inhabitable.
That leaves homeowners in a bind that have a damaged and uninhabitable home. So, what a real estate investor does is offer a cash value for the home so that the homeowner can take that, use it to pay off the mortgage, and have some cash left over for a down payment for another property. The downside to this is that the homeowner loses a chunk of equity they had in the property. The upside is that they are not stuck paying a mortgage for a home they can’t live in. This is a process that homeowners rinse and repeat, thus having the money to restore houses that can then be sold back to the market, perpetuating restoration in waves as homes age and become neglected or vacant.
How It Works If You’re In A Tough Situation
If you are dealing with a situation where you’re unable to make payments due to financial or medical reasons, or your property is damaged beyond your capability to repair, it’s time to contact an investor. A home buyer company in Houston can generally offer you a fair cash value, albeit lower than if it were in ideal condition and sold on the market. Because investors are dealing on their own, there’s no commission fees that would go to real estate agents. Additionally, closing is pretty quick, and the investor would cover that entirely. Aside from the cash offer, there’s no other hidden or additional fees that a homeowner would incur with a good real estate investor. But even though they are helping you out, they are still investing. It’s a business model for them, so they have to make profit. That’s the downside to using an investor. They will usually offer a low-ball value to increase the buffer they have for profits (especially if the repairs end up being higher than they expect). It can be quite a risky business for them, but they are still interested in the home and helping you, the homeowner. To learn more about investor strategies and other home related tips, be sure to check out our blog on the homepage (http://www.dallascarpetcleaningblog.com).