Learn how to locate distressed homes for a great opportunity to take advantage while prices are cheaper. With undervalued properties, we can get very good returns on investment. In this article, we will be discussing some of the ways to locate distressed homes in your area.
Now we have to be careful here, as some of these properties may have mortgages and by buying it, you could have a mortgage as well as liens unpaid by previous owners. Often times these houses are in really poor condition, so it is recommended to seek legal advice and know enough about the background of the property.
One of the main problems, when we are trying to make good deals in this business, is to find the right property. Fortunately, that is usually the biggest problem we will have when we work with distressed homes. As difficult as they are to find, the struggle we will go through is worth the time we spent because of the profit we will make when we sell them.
How to Locate Distressed Homes your neighborhood
Drive around and see what potential properties could be available. Look for signs of properties being abandoned, places that seem to be vacant. Find properties that are listed for sale by owner – you can find these homes driving slowly around area neighborhoods. To see things you would not see on the internet, look at every house and door to check out for lock boxes which mean people are renting it or they may be listing them for sale. You can contact the owner, tell them what your job is (real estate investing), and what you can offer them. Telling them you can close the sale right away or in less than a few weeks, depending on how good you are, is an attractive prospect to sellers.
Once you figure out how to locate distressed homes in your area, we can focus on the profit section. Another good thing about working like this is: if someone has just sold a house you can take a look at the address on the internet and see for how much it was sold and get an idea on how worth houses are in that neighborhood.
Driving through neighborhoods and finding distressed homes should not be an issue, if we pay close attention and check out carefully things that will let us know about the condition of the property. Check for things that let you know the property in bad state – like broken windows, paint in terrible condition, unattended lawn, etc.
Online Search
Although we advise everyone to get the proper real estate investor education, there is a technique that will help you simplify your work and help you how to locate distressed homes in your area, and it is online searching. We all know that it is quite difficult to do everything by yourself and the internet makes it very easy, or easier I should say, to find these properties.
Searching online is one of the best ways to pick the right property and take advantage, as you know no one list their house as “distressed house” unless they are really desperate to sell it. So there are some tricks you have to take into account when you are looking for these properties online. You have to learn how to read the descriptions and identify theses houses in places like Craigslist, based on keywords like “handyman special,” “needs updating,” “needs TCL,” and others.
There are other sites like Craigslist that need registration and some others that are subscription based (worth the money). Some websites also allow you to get notified by email every time a property meets your criteria. You can also look for properties by location and also shrink your search by finding foreclosure listings specifically, to take advantage of that category of distressed homes.