Recently we purchased a side by side duplex with very old electrical. You walk down in the basement & instead of seeing the standard breaker panel, you see the old fuse box. In todays real estate market, that does not fly. So how did we go about purchasing this property & still being able to obtain financing?
Financing a Property With Old Electrical
The biggest thing people need to realize is that a lot of properties real estate investors purchase are done with "non-conventional" financing. Meaning, they do not go through a traditional bank to get a loan. However, we have built relationships with Commercial Lenders in our area & they will finance pretty much anything. And that is how we financed this purchase!The loan is pretty standard as a 80% LTV of the Completed Appraised Value. So we give the appraiser our scope of work & how the property will look & then they appraise it for us.
What about Insurance?
Insuring a property with old electrical is another problem a lot of people face. Again, we do have contacts in this realm that will insure our flip properties & then we switch them into cheaper more conventional insurance.Definitely be sure to shop your insurance rates around when just getting into the industry!
If you are looking to sell a house with old electrical in Green Bay you may want to speak with a local real estate investor. Feel free to reach out to us or any other investors in the area!
Thanks for taking the time to read this article
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