Distressed properties are quite big among investors in real property because these homes are easy to repair and resell for a huge price mark up translating to handsome profits.
What exactly are Distressed Homes?
Distressed properties are homes that have been repossessed by mortgage lenders after the original owners fall into mortgage default. These homes are usually in less than ideal states that require some fixing. Being in this condition, they are sold lower than their actual value. Buyers usually purchase these homes to realize savings.
Where Are These Properties?
These homes are everywhere and they are in high numbers so searching for the one you like may take some looking. The task gets easier though if you have the right resources to support your search.
One such resource is an online foreclosures listing site. There are several of these sites online and they basically offer the same set of services. These sites all maintain a database of foreclosed homes across the country which can be searched by location, price or home type. The good sites will be offered by subscription but you can try them out for a limited time first before committing to a full-month subscription. Make use of this trial offer to determine whether the site offers timely and accurate data.
Apart from the online resource, one may also pay their bank a visit to inquire about distressed homes. Being the leading provider of home mortgage loans, it is but natural to assume that banks will also have the most number of foreclosed properties.
Real estate companies are another resource if you can look through the marketing and advertising ploys they are up to in order to push the homes they are selling. In order to stay ahead of the pack you need to be among the first to check foreclosed homes as sure as they hit the market.
Distressed homes may appear dilapidated and run-down at first blush. But if the damages are all superficial then the outward appearance of the home is the least of your worries. You will get a huge chunk of discount from buying them anyway and use the savings you make on repairs.
Savvy investors and real estate experts swear there is profit to be made in distressed properties. One just has to find the right one based on the knowledge and information they have. Do some research and gather as much information as you can.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.