A distressed property can either be financially or physically unmaintained by the current owner. From the perspective of real estate investing, distressed properties are homes in which the owner has been unable to maintain their mortgage obligations and are therefore at risk of falling into foreclosure.
Pre-foreclosure and distressed properties can already represent what it is said to be. The owner is merely at risk of foreclosure and has no plans of salvaging the property, and neither would they want to refurbish the said asset fully.
Here are five sources wherein you can maximize and take advantage of them:
Bear in mind that residential properties are not the only ones that can fall into a distressed state. Commercial properties can also fall upon the same bracket, and when they do, they can serve as a lucrative opportunity for investors just like you. All you have to do is maximize and utilize these resources and be diligent in your search to get the best possible result.
Websites that focus on Commercial Investing: The internet has provided us with the leniency of finding websites that cater to investing in commercial properties; all you have to do is maximize that search option. Luckily, Real Estate IQ provides all of this and more. You may want to check them out or at least optimize the sources that they have to offer.
Real Estate Brokers: Brokers are one of the main pivotal points in seeking distressed properties. Hiring or partnering with them will make the search a lot easier. Because they are already willing and able to do the dirty work, you would just need to utilize their references.
Real Estate Lending Gurus: With this method, on the other hand, residential property financing is just around the corner. Many investors go through traditional financing to fund their commercial real estate deals; therefore, these lending gurus may have something up their sleeves.
Lending sites and gurus are like brokers who have allowed them to support financing and will reclaim properties that don’t make ends meet—selling them to you at a more affordable price.
Building your Network: Just like any other business, building or expanding your network with people who share the same cause (Looking for a distressed property) will aid in your endeavor. Networking strategies include working with brokers and lenders. By staying connected and building long term relationships with a multitude of real estate professionals throughout your career will increase your odds of landing investing opportunities, which in return may lead to a great find.
Mailing Campaigns: As mentioned, the technological advancement we are in alongside the current pandemic we are experiencing most of how the business flows will be through the internet. Whether you identify distressed properties for sale online or through your related contacts, you will still need a formidable strategy in targeting the listings you have found. Direct mail campaigns remain one of the most effective and sustainable marketing strategies in real estate, where you have the opportunity to make compelling offers directly to the seller with ease.
These sources maximized to their full potential will make finding the next distressed property that you can easily purchase, flip, and resell to generate the income you desire. Be mindful that these resources may need the investment or cost on your end, but in return, it will surely provide you with the best results. As an entrepreneur, you shouldn’t be afraid of taking a risk that showcases a return on investment. It’s a challenging world out there so make sure you are up for that hurdle.
Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.