How
To
Profit From Distress Property For Sale With Your
Conscience
Intact?
The
most
important question I get asked by junior property investors is;
“How do you
walk in and out of a distressed property for sale deal and still sleep
at
night?”
There
is
no easy way to do that and I would not try to make light of the
situation
because the family that has put their home for a quick sale tend to be
facing
an exaggerated dilemma or a true personal and financial catastrophe.
You would
do well to remember that when you are dealing with the agent who
represents
them, the financier or the auctioneer.
Booked
single viewings are especially hard because you feel their misplaced
animosity
as the man or woman who is putting them out. I generally prefer open
houses
where the current owners or tenants have stepped out for a while and I
make a
point of asking the intermediary person I am booking with.
You
have
to remind yourself that you did not take their property; they lost it
because
they made financial mistakes that you are preparing yourself against by
reading
free information that I am presenting on this website.
Your
first step in making money should be building houses from reputable
property
developers first and branching into ready built homes that you rent out
for at
least a year so that you will immediately be able to spot the
structural or the
neighborhood pitfalls lurking on that particular distressed property.
It may be
very dilapidated or secretly so and I would not recommend such a type
of
initial investment for a total novice just getting his or her feet wet.
·
You
need
to be acutely aware of the rates, taxes and municipal costs still owing
and the
repairs that still need to be done to bring the building up to code.
·
You
need
to make sure all the building plans are approved and up to date.
·
You
need
to know what will happen to the tenant, will they leave or will they
become
your problem.
· You need to be aware how long you will be waiting for the deal to go through and in an auction scenario you need to be ready to get quick financing if necessary.
You
need
a strong lawyer who is acutely aware of the local eviction protocols
are and
how to get results quickly (or how to avoid delay tactics if the tenant
is
desperate.)
There
is
much preparation to be done before profiting from buying distressed
homes on
sale and you need to be courteous but firm in your belief that you are
saving
the current owner from a debt they can no longer possibly afford.
Other
types of distressed properties are available due to the following
reasons:
2.
Divorce
community property sale
3.
Urgent
emigration status
4.
Job
relocation
5.
Retirement
6.
Retrenchment
7.
Government
seized properties or foreclosure
8.
Bank
foreclosure
9.
Imprisonment
10.
Liquidation
property
11.
HUD
foreclosures
12.
Tax
foreclosure properties
