Invest in distressed properties only if you have enough time


Who are the best investors for distressed properties?

The best investors for distressed properties are those people with the time and ability to research all the issues related to making an informed decision. At some point you can make the decision to hire professionals to give you the final go ahead. Before you spend the money, however, you want to be reasonably certain there will be no surprise repairs, no overly expensive waste cleanup, and no creditor claims that will still be good even after you buy a property. These will all be discussed in more detail later.

Having a talent for research and knowing where to look for information is not very common among the general population. If you can do the research, and if you enjoy doing it in pursuit of a goal, then you will find yourself with not very much competition as you hunt for investments in distressed properties.

Investing in these properties also requires a certain amount of self-confidence and the disregard of other people's opinions. You cannot be frightened away by a stigma property, for example, just because everyone thinks it is a bad investment. If you are the kind of person who is sure when you are right, with no second guessing, you will do well. If you are often overcome with doubt, especially when other people contradict you, you might not be emotionally suited to this strategy.

How do I find properties with owners in crisis?

Here is the trick about these properties: Most people who know about looming crises - lawyers, doctors, counselors, and religious leaders - are not allowed to tell anyone. Even if you found out, would you really feel comfortable intruding on someone's problems and offering to buy their property cheaply? Most people cannot do this.

Instead, network with the lawyers, doctors, counselors, and religious leaders. Let them know you are prepared to buy properties quickly, with little notice. Make sure they know you buy at discounted prices, but you can close quickly. Leave business cards that include the legend, "I buy properties quickly and quietly."

Many people spend a minimal amount - US Dollars 100 or so - on signs to plaster everywhere. They say something along the lines of: "Problems? We buy properties quickly and quietly. Call 555-0000." I am not convinced this is an effective strategy, because you are shot-gunning such a large audience. I prefer more targeted advertising, such as an advertisement in the "Want to Buy" classified section of the local newspaper, signs at pawn shops, and a website with good placement when someone searches on "quick cash and [the name of your community]."

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This article was sent to us by: Thomas C. Surry at 06282010

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