6 Hacks for finding Distress Properties for Sale

6 Hacks for finding Distress Properties for Sale
6 Hacks for finding Distress Properties for Sale
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Are you a newbie to real estate investing? Or, are you a professional who is looking to venture into a new investing strategy? Then, there are high chances that you are on the lookout for Distress Properties for Sale. These are the properties that can offer undervalued deals and, thus, are pretty lucrative to investors. This also goes a long way in increasing your profit margin. Here, we will be taking a look at the different ways through which you can find distressed properties. So, let’s start. 

Distressed Property- What is it?

Homebuyers and real estate investors alike frequently opt for investing in distressed properties. These homes are an enticing proposition for anyone who is looking for a fixer-upper with and lower purchase price. They are also an excellent opportunity for homeowners who are looking for a chance to break into fast-moving markets, as that is a place where there are fewer offers to compete with.

The same reason also stands true when real estate investors find interest in Distress Properties for Sale. These homes often offer a lower purchase price, and that is what features highly motivated sellers in many cases. These are some of the characteristics that go a long way in helping investors secure more profitable deals. 

Distressed Properties- How to find them?

Distressed Properties are, undoubtedly, one of the most attractive investment opportunities. They just can’t offer wider profit margins than traditional deals, but they can also represent less competition as well. But, have you ever wondered what could be the possible reason behind it? Well, the reason is that investors are often in the dark as to how to locate and invest in distressed properties. Here, we have mentioned some of the ways in which you can seek these opportunities. Let’s take a look at them. 

  1. Look for Neglected Properties: When we speak about the physical appearance of a distressed home, the one tell-tale sign that you need to keep in mind is neglect. The first step that goes into selecting Distress Properties for Sale is to select a target neighborhood and then look for homes that may be neglected. The common thing that you may witness in a distressed property include the following:
  • Multiple notices were placed on doors and windows. 
  • Indoor and outdoor lights turned off at night
  • Broken windows or any other critical important repairs
  • Neglected lawns or a yard with overgrown weeds
  • Uncollected newspapers or mail
  1. Check Tax Records: Delinquent taxes are public records. And that is something that could suggest a homeowner is in financial trouble. If for nothing else, if a person is not able to pay the taxes, he/she will not be able to pay their mortgage. Delinquent taxes often act as a motivation to sell. 
  2. Search Online: There are lead source tools like Listsource where you can find “properties for sale by owner” that are delinquent in mortgage payments and taxes, probate deals, properties that must be sold legally due to divorce or bankruptcy, and properties that are owned by the government or the bank. 
  1. Find Properties with delinquent mortgage payments: It should not come as a big surprise that the epitome of distressed properties is represented by homes with delinquent mortgage payments. Those who are unable to pay their mortgage are at risk of foreclosure. So, they will also be willing to sell it at a discount and thereby avoid foreclosure and other financial woes that might accompany it. The good thing is that you can easily find public records of delinquent mortgages at local courthouses.
  1. Take into consideration Probate Opportunities: Another creative space to find Distress Properties for Sale is the Probate Court. Probate property is really a great opportunity for investors. These are the properties that have been left behind due to some significant life events, such as a death in the family or divorce. There are also several cases where those inheriting a home may not want it. This presents a golden opportunity to snap up the deal from them at an attractive price. Here you should also note that making an offer on a probate sale calls for a special process, as the property is being sold through an attorney or an executor.
  1. Peruse REO and Bank-Owned Properties: Do you know what REOs are? Well, these are known as real-estate-owned homes, which are properties that lenders have already repossessed. Having said that, the lenders aren’t in the business of holding real estate inventory and would rather like to get rid of non-performing assets. The result is that savvy investors can convince the said lenders that selling them the home at a discount might just be the right way to go in this scenario. 
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Final Take:

So, the aforementioned were some of the useful hacks through which you can locate  Distress Properties for Sale. Select any of these best that suits you best, get hold of these properties, and thereby increase your profit margin. 

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Abhay Singh

Abhay Singh is a seasoned digital marketing expert with over 7 years of experience in crafting effective marketing strategies and executing successful campaigns. He excels in SEO, social media, and PPC advertising.