subject: Opportunities That Hide Behind Distressed Properties [print this page] Sharp-eyed real estate investors see tons of opportunities hiding behind distressed properties. A lot of neophytes view these houses as a blot on a landscape but successful investors know better. They hunt for these properties and convert them into money cows. For those who are curious about the opportunities these houses possess, read on.
Houses that are considered distressed are perfect for real estate investing. Thats because they are commonly cheap. By distressed, that means that they are in the process of foreclosure. It is possible that they are headed to that event of have already been there. What matters is they are owned by sellers who are very motivated to dispose of the property. And because they are motivated, they are willing to accept low payments in exchange for a fast closing. When you are buying distressed properties, you are in a good position to buy low and then sell them high.
For example, short sales is among the methods of real estate investing that rely on these homes. In a short sale, the investor will negotiate with the lender for a lower amount on the mortgage owed. Since the owners of the property do not want to be foreclosed, and the bank does not want to lose money as well, they usually resort to short sales. If you are an investor, you are in a good position to make money from the motivation of these sellers and lenders.
Another business where distressed homes are a hit is rehabbing. In this investing mode, investors buy properties that are dilapidated or those owned by motivated sellers. They then make necessary repairs so the houses can be sold at a much higher price. The key to this business is also to buy low and with these properties, they make it possible.
Lastly, those who want to make money from distressed properties must learn how to wholesale houses. Wholesaling is basically quickly reselling houses. Most of the time what investors do is talk to the seller and place the house under contract. They will then assign the contract to an interested buyer and get an assignment fee in the process. In most states, the assignment fee is around $10,000. That means you will earn $10,000 just by looking for these houses and referring them to buyers.
If you want to learn how you can convert these opportunities into profits, simply go to RehabList.com right now and create a log-in account. Then, enjoy the free services this real estate website has to offer.
