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Real Estate Sales - Distressed Properties

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By : Karim El Sheikh    99 or more times read
What pops up to your mind when thinking real estate sales and distressed properties? The things people usually start thinking of are finding properties, buying them, fixing them up and finally selling them at significant costs. For most people, property sales are situations in which they are forced to deal with other distressed properties or real foreclosures, for example, foreclosed banks or other properties that can be fixed up and then soled for a profit.

Traditional Home Flips & Distressed Properties

The normal traditional flipping or switching of houses requires significant amounts of time, investments and efforts. However, people actually have the option of “wholesaling” distressed properties, which is quite an effortless process. With such property sale options, you have the benefit of not worrying about your credit, and the best part is, you will need little or no money to accomplish this.

As an investor in distressed property sales, the best thing for you to do is to buy homes or properties and then sell them off at higher prices to buyers that are actually going to be fixing them up. You as the seller will not be bound to renovate or repair the properties. All that will be required of you will be to sell the property in its present condition.

Distressed Property Sales – Working via Notes

As a real estate investor, you have two options at your disposal, i.e. either to be a property owner, offering the seller to carryout all the financing or you can purchase properties from sellers that have contracts with real estates. This is where you will require what is known as a “seller backed financing”, where instead of collecting cash from the buyer as a lump sum amount for sale, the seller collects payments over set periods of time (more like installment payments). Then it is left to you to buy or sell those installment payments for a lump sum amount of payment. You alternatively also have the option to sell off a portion of those installment payments for lump sum payments.

Working as a Real Estate Distressed property Broker

Being a broker for real estate distressed properties is one of the best ways of making money in property sales. As a broker, you get to arrange the buying and selling of real estate distressed property notes between both the buyers and sellers. As a result, you receive a “finder’s fee” once the notes for distressed properties have been sold off.

Getting Involved in Distressed Property Sales

There are so many ways one can get involved in distressed real estate property sales. What is even better is fact that you won’t need to invest extra or significant amounts of time and efforts in the fixing (i.e repairing) and flipping of the properties. Instead, getting yourself involved in buying, selling and brokering, buying and selling of real estate distressed property notes is a very god way to make significant incomes. What interests most people is the reduced amount of trouble and hassle involved, as compared to process of traditional flipping in real estates.

The following are a few options for distressed sellers:

  • Cutting down their living expenses
  • Increasing their bond terms to the maximum
  • Approaching their banks or bond holders and negotiating payment plans while selling properties
  • Take in partners to form syndicates to buy into their properties
  • Price their properties at realistic prices to get off their losses is your online resource for finding foreclosures, short sales, rent to own, and preforeclosure homes for sale.

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