Are you all set to buy a wretched property at a low price, renovate it, and sell it at a higher price? Well, it does sound like a good deal since the competition in such projects is often low and the profit margin is excellent. However, to ensure the success of your real estate investment project, you ought to find suitable distressed properties for sale. Before that, you need to decide the type of distressed properties you want to invest in. Through this write-up, you will walk through the best-distressed properties you can choose while sharing top-notch hacks to find them. So, stay tuned!
Distressed properties for sale can be categorized into several types, each having its specific considerations and perks. To name a few:
- Short Sales: Short Sales can be an excellent investment choice! It’s when homeowners sell their property at a low price compared to the outstanding mortgage price. Though its a money-making deal, lender’s consent is necessary, you might need to wait for the lender’s approval.
- Foreclosures: Have you made up your mind to invest in foreclosures in Florida? Well, consider this: Foreclosures could be your golden ticket! These are homes that should not be overlooked because folks couldn’t keep up with their mortgage payments, and now the bank is auctioning them off.
- Divorce Sales: Sometimes because of divorce settlement properties are sold at a much under-market price, and surely a great investment.
- Estate Sales: when an owner of a property dies, the beneficiaries usually sell off the property to liquidate the property and pay the debts. You can invest in such a property as well.
Now comes the core part of the topic, how to navigate distressed properties for saleand choose the one worth investing in. Worry not just follow the below-listed tips and get your work done in the first place!
1. Check the Local MLS Listings
When it comes to finding distressed properties for sale, MLS listing serves as an excellent resource. Imagine that there is a distressed or abandoned property, just waiting for a savvy investor like you. But here’s the catch! Only those with a real estate license get the backstage pass to the MLS listings.
If you’re new to this game, a real estate agent might be your sidekick. Now, here’s a pro tip: Look for listings that have been hanging around for over 90 days. That’s like a neon sign saying, ‘Serious about selling!’ So, if you’re ready to dive into the real estate adventure, keep your eyes on those long-standing gems in the MLS listing.
Choosing properties that are listed on the MLS for long enough ensures a better deal. Not everyone prefers buying distressed properties, thus the sellers become desperate to sell their assets at any cost. As a result, you can even negotiate and lower the mentioned price.
2. Conduct an Online Research
Other than MLS listings, you can also look for estate sales and foreclosures in Florida online! There are several online platforms and websites that post ads in search of buyers for distressed properties. However, they do not really label them as distressed and skillfully strategize the ad using different terms like sale by owner, foreclosures, short sales, etc. However, make sure that the property you have searched online is being sold legally.
3. Network with Real Estate Brokers and Lenders
Networking with lenders and real estate brokers is indeed one of the easiest ways to find distressed properties. Not only do they have news of such properties, but real estate professionals can even help finalize the deal conveniently. You might need to pay a significant amount of fees to them, but it’s completely worth it! When you have professionals by your side to guide you, the chances of accomplishment increase!
4. Check Court Filings
One fine way to find distressed properties for saleis through the public records, which you can easily find on the country evaluator sites. Also, you can seek help from a third-party company to check the tax records of your locality on your behalf. Additionally, you even keep your eye on the local court filings as well.
5. Visit Local Property Auctions
If all the above-listed ways feel overwhelming, just attend the local property auctions. You will definitely find a suitable distressed property for your investment. Check the local newspapers, court records, and direct advertisements to learn about the auction timings. Or you can simply start discovering neighborhoods with signs of distressed properties and make direct approaches by sending postcards and mail to the homeowners.
Hopefully, now you have a clear on the best form of distressed properties for sale and effective ways to find them! Try any of the methods and find the best project for investment. Before finalizing a property consider its neighborhood, amenity, and transportation to ensure a higher resale value.