Before you invest in Real Estate, you need to know what you’re getting yourself into. Many individuals lean towards buying distressed properties since they tend to be sold at a much cheaper price than a retail property. With the help of distressed property listings, you can easily know which properties are available off-market and make below-market offers directly to the owners.
Distressed properties are essential assets that the owner is willing to get rid of because of their inability to make the mortgage payment or keep up with the property. While this might be a good option for some, it’s always best to perform thorough due diligence on the deal before you put your money into it. Aside from title issues, there could be many hidden costs lurking, such as unknown property rehab, encroachment, building violations, etc. There will also be a whole lot of competition since everyone wants to buy the cheap property. The good news is that you will be ahead of the competition since most investors/buyers are busy with a run of the mill MLS lists or highly competitive auctions.
Consider these following steps for the due diligence:
-Investigate the after-repair-value (ARV) of the property by looking at comparable nearby sales
– Get an inspection done from a state-licensed inspector
– Get at least 3 contractor bids to get a handle of rehab costs
– Finally, have an attorney review the Title commitment from the Title company to ensure all title issues are resolved
Of course, don’t forget for the golden rule of real estate – “Location Location Location Location Location “
Look out for the walking score, zoned schools, public transportation, distance from a major road or freeway and ample drainage
Becoming good in acquiring off-market distressed homes could be a huge factor in building your net-worth fast. By buying homes at a deep discount, not only will you walk into large equity but also deploy much less cash out of pocket given the plethora of alternative financing (hard/commercial/private) available today. Build a team of agents, wholesalers & private money lenders and you will be on your way to becoming a successful Real estate investor.
https://realacquisitions.com/ is one such company that offers the best off-market distressed deals with the help of the industry-leading real estate leads software. You could also find great partnership opportunities with a large community of investors already plugged into the Real Acquisitions platform. For a limited time, their affiliate program is open as well allowing investors to add a sizable income. Of course, if you offer any real estate services you may join as a vendor to access thousands of ready real estate clients.
Here is your & your journey as a Real estate investor! Happy investing in the new decade!