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Foreclosed properties are among the most common investments that house flippers make. However, understanding the foreclosure process can be intimidating. Maybe you’ve even had friends and family members warn you not to invest in these properties. In this article, we will explain the basics of the foreclosure process in simple language so you can decide if investing in foreclosed homes is right for you.

What is Foreclosure?

When a person purchases a home, they usually take out a mortgage, which is a special bank loan designed for homeowners. If a person cannot pay their mortgage, the bank can take possession of the home through the foreclosure process. While some states require the bank to go through the court system during foreclosure (called a judicial foreclosure), Texas and 27 other states do not require this (called non-judicial foreclosure). This means that foreclosures tend to move faster in these states.

Investing in Foreclosed Homes

One of the main reasons that foreclosed homes are common investment properties is because they are typically sold well below market value. Why is this? Usually, it is because the bank is simply trying to cut their losses. Selling the foreclosed property quickly will get it off the bank’s hands and allow them to make back some of the money lost. There are pros and cons to investing in foreclosed properties. We will explore these in future blog posts.

Texas Real Estate Investor Loans

Whether you decide to invest in foreclosures or not, real estate investments, in general, can be lucrative. Red Door Funding offers real estate investor loans to help you purchase and renovate Texas properties. Learn more about what we offer by calling 832-539-1099.

It’s a common question. Prepaying a loan will allow you to manage your finances on your own terms and can help you avoid additional fees in the future. However, different loan companies have different policies when it comes to prepaying. Read on to learn about prepayment for our fix-and-flip loan program.

Pros and Cons to Prepaying Your Loan

Should you prepay a portion of your loan? At Red Door Funding, we leave the choice up to you. There is no prepayment penalty on our fix-and-flip loan so you can pay on the schedule you like without additional fees. Many people who have the means to prepay like this option because it reduces future payments and reduces the amount you will pay in overall interest. However, some people choose not to prepay because affects their personal savings goals.

Understanding Your Loan Terms

Our fix-and-flip loan term is one year with automatic renewals at six and nine months. There are no additional fees if you repay your loan within six months, which is another reason that some individuals choose to prepay. Click here to view the terms of this loan.

Texas Investor Rehab Loans

Are you ready to make an investment? Red Door Funding makes the loan process quick and painless. Our fix-and-flip loan will allow you to invest in rehab properties. Flipping homes can be a lucrative practice- one that stimulates the local economy and allows you to express your creativity. Take the first step toward real estate investment by calling Red Door Funding at 832-539-1099.

Are you excited to renovate your investment property but overwhelmed at the thought of performing the renovations yourself? While it can be fun to design elements of your new property, the actual building should be left to the professionals. Below, we will explain the role that contractors play in home renovations.

What is a Contractor?

A contractor is an individual who oversees a construction project. Contractors work with construction workers, vendors, engineers, and other professionals to manage the overall build. When you hire a contractor, you will have a point person to make sure your home renovation is meeting your goals.

Experts in Increasing Home Value

Some people wonder if hiring a contractor is worth it. After all, can’t you delegate tasks related to the construction project to yourself? While you certainly can, working with a contractor will ensure that your real estate investment yields the highest possible return. Contractors will be able to increase the value of your home and know which features attract potential buyers.

Affording a Contractor

Hiring a quality contractor can be expensive. By using a fix-and-flip loan, you will be able to afford your contractor and any additional home renovation costs before your property is ready for the market. Explore the Red Door Funding website to learn more about the types of loans we offer or call us at 832-539-1099 to learn more.

You’re probably heard about the benefits of investing in real estate. While many types of people invest in real estate, many others feel they simply can’t afford an investment property. Temp-to-perm loans are a solution for these individuals as they give people the temporary funds needed to fix up an investment property. Below, we will explain the basics of this popular type of loan.

Who Should Apply For a Temp-To-Perm Loan

A temp-to-perm loan is a great option for anyone who is looking for temporary funding for the quick purchase of a property. The real estate market moves at a notoriously quick pace, so these loans allow borrowers to secure funds quickly. Certain borrows might also be able to finance their closing costs and other expenses.

Understanding the Terms and Fees

You can click here to learn all about the terms and fees associated with our temp-to-perm loan. The loan term is one year with automatic renewals at 6 and 9 months. The initial APR is 7%. If the loan is not paid off within 60 days, the APR increases to 13.99%.

Applying for Your Loan

Are you ready to invest in real estate? At Red Door Funding, we strive to make the process as streamlined as possible. Explore our website to learn more about the loans we offer and download your forms today. If you have additional questions, give us a call at 832-539-1099. Our staff will be happy to assist you.

If you are looking into real estate investments, you should consider rental properties. While most people think of resales when they picture investment properties, there are several benefits to keeping your property as a rental instead. Read on to learn why you should consider a rental property for your next investment and how Red Door Funding can help.

Invest in Your Hometown

Renovating rental properties is a great investment for people who are passionate about their local community. When you invest in rentals, you aren’t just investing in your local real estate market. You are also giving your tenants a great place to call home. Rental properties are a great way to help your community while also making a smart investment.

Earn Passive Income

Rental properties are a great investment because they allow you to easily make passive income. When you rent your property out to tenants, you will receive a steady stream of income that will allow you to pay off your investment quickly. After this, you can use this passive income to pay off your own mortgage or to invest in more properties.

Rental Property Loans from Red Door Funding

If you are looking to invest in rental properties, Red Door Funding can help. We offer competitive rental property loans to individuals in the Houston metro area. To learn more about these loans or to begin the application process, call Red Door Funding at 832-539-1099.

Using a fix-and-flip loan to renovate and resell a property can be a smart investment. These loans allow you to finance big repairs on a home, bring damaged properties back to life, and support your local economy. But how do you find properties to flip in the first place? Keep reading for our top suggestions.

Consider Auctions and REO Listings

If you are looking into foreclosed homes, bank auctions are one of the most common places to find properties. These homes are sold at a steep discount so the bank can minimize losses. While there are downsides to purchasing a house at auction (such as inheriting the property liens), auctions can still be beneficial. Real Estate Owned listings (or REO listings) are another option if you are interested in purchasing a foreclosed property that didn’t sell at auction.

Use the Multiple Listings Service

The Multiple Listings Service (or MLS) is a great way to look at a variety of properties in your area. This site compiles listings from a variety of sources so you can see them all in one place. It’s also a great tool for market research because you can easily see the different types of properties (and their values) in your area.

Red Door Funding Can Help

Red Door Funding has a sister company that can help you find a wholesale property to purchase for investment purposes. We work closely with a variety of local wholesalers and would love to help you find a great property. For more information, call us at 832-539-1099.