Featured Tips

  • No posts where found

Rescuing a Distressed Home: Top Tips for Revealing the Beauty Beneath

Rescuing a Distressed Home: Top Tips for Revealing the Beauty Beneath
  • Opening Intro -

    One of the most rewarding things about real estate investing is that there are so many ways to make money in it.

    If you've ever been fascinated by the idea of flipping homes, here's how successful investors pull it off.

-------------------------------------

Assessing The Possibilities

Distressed properties come with baggage. This could be serious or not, depending on the home. It may include property damage, unpaid HOA fees (which you’ll have to pay), taxes, second mortgages, and maybe even tax liens. Distressed properties are also rarely move-in ready.

Usually, you have to do significant repair and remodeling to them. Fortunately, companies like  Same-Day Rubbish Removal make this a relatively easy job (on the rubbish-removal side of things).

If you’ve never done this before, then realize what you’re getting yourself into. You need a lot of experience and skill to do this on a large-scale, and even small renovations easily go over budget.

Since distressed homes are typically bank-owned, it can take weeks or months to get approved. The approval time gets longer when there are title issues or other questions of ownership. Sorting out these details is best handled by title experts and lawyers.

It’s Not That Easy

T.V. reality shows make it seem like flipping homes is easy. It’s not. Low prices and an improving economy means that you have to go after distressed properties. And, because of this, you often end up in a bidding war with aggressive investors. This leaves you in a tough spot, financially. In cases where an individual beats out dueling institutional investors, the price can be so much less of a deal than it otherwise would have been.

According to the Wall Street Journal, experienced foreclosure buyers usually bid higher than the asking price. This is because they know how much they can get back out of their purchase. Just because it’s distressed doesn’t make it a bargain. Sometimes, a traditional sale yields a better price with faster turnaround.

How To Buy

Don’t waste your precious time waiting on offers. Make sure you have a loan approval on your end and bid aggressively. Have a contractor look over the home first, and try to assess how much it will cost to fix it up. Sometimes, it’s not worth buying due to the extensive repairs. You need to know this before you make an offer.

Pad The Budget

You should have professionals come in and look over the home, take detailed pictures, and figure out how much it will cost to fix it up, then add a “buffer” to the budget. Experts recommend adding 10% to 20% to the estimated renovation costs.

Know How Much You Can Offer

Know what a realistic price is that fits into your budget. Looking for the deal of a lifetime isn’t going to get you the property you want if there are a lot of people going after the same property you’re going after. Understand the real estate investing world won’t always be fair. Sometimes, homes are listed at a lowball price to attract sales leads, and other have “secret” pricing that’s only known to insiders. Don’t get frustrated by this. Move on and buy something else.

Check Your Emotions At The Door

This leads to the final thing you need to be cognizant of: your emotions. Emotions are a big part of the reason many investors get taken advantage of.

Your emotions should not be playing a huge role (or any role, really) in the buying or selling of real estate. If you’re looking at these transactions as an investment transaction, your goal is to minimize the costs of buying and selling, and trying to realize the full potential of the home you’re buying.

You do not want to see a home as something you “must have.” It’s either a good investment or a bad one. And, information can change the quality of an investment rapidly. If you find out that there is an insider pricing sheet, and you’re not privy to that information, the best thing you can do is move on.

Don’t get angry. Just try to find a better deal on the next investment. If you keep running into the same problems, you need to alter your strategy. Maybe you need to network more to figure out how these other investors are getting the inside track on you.

Maybe you need to move to a different market and buy up homes where there is less competition.

Matt has worked hard over more than a decade to build a successful business in Sydney, Australian, operating in the waste removal industry. He enjoys providing good old fashioned service, and seeing the difference a couple of days hard work can make to a property in need of TLC. He enjoys traveling when he can.

$6.39Bestseller No. 1
The Business of Flipping Homes: Short-Term Real Estate Investing for Long-Term Wealth
19 Reviews
The Business of Flipping Homes: Short-Term Real Estate Investing for Long-Term Wealth
  • William Bronchick, Robert Dahlstrom
  • Publisher: BenBella Books
Bestseller No. 2
The Book on Flipping Houses: How to Buy, Rehab, and Resell Residential Properties
236 Reviews
Bestseller No. 3
The Flipping Blueprint: The Complete Plan for Flipping Houses and Creating Your Real Estate-Investing Business
100 Reviews

Last update on 2018-07-19 / Affiliate links / Images from Amazon Product Advertising API

-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------

directory photos forms guide

Helpful article? Leave us a quick comment below.
And please share this article within your social networks.

facebook google+ pinterest
Categories: General News

About Author

LetsRenovate Admin

From the administrative staff at LetsRenovate.com. We hope you enjoy this article and the elements of the site. Please forward any suggestions or comments regarding the posting or other suggestions for improvement. We also operate other helpful guides in education, money, travel, and business. Visit our main site for address information. Thank you. Please share this site with friends and family.