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Distressed Property

Distressed Property; Is it a Positive Investment?

There are many investments that are made in real estate, most which are expected to allow the price of the property to go up. However, sometimes the value of a property starts down. If you have run into a property that is like this, you will want to decide if it is worth investing in. Distressed property is one of the questions that several ask when investing into real estate.

If a property is distressed, it means that it has not had the care and attention needed by the previous owners. Most likely, the home is part of a foreclosure, abandoned home, or other problem and may have not been lived in for a specified amount of time. Any distressed property will need a lot of attention given to it if you decide to invest in the property.

Before looking at this type of property, you will want to make sure that it will be worth your investment. While a distressed property will usually go down thousands of dollars because of the quality, it may not be cheaper. It will be expected that you put a specific amount of work and money into the home in order to repair it and get it back up to being part of the market.

If you are able to get an extra loan, have more money, and want to fix up a home, then a distressed property is for you. However, if you don't want to put in the extra effort, then finding this type of property may loose you money and comfort in your own home. You will also need to decide whether you will be able to profit off of the investment in the long run according to the neighborhood, market, and your intentions for using the property.

While a distressed property can benefit, it will need to fit your goals and your lifestyle in order to be an effective investment. As long as you have assessed your financial stability and goals and are able to put in the extra money, time and work, you can take a distressed property and turn it into what you want. This will give the property the dream of moving from rags to riches.

Property Distressed

If you have the time and resources available this can be a very lucrative investment opportunity. When I was in the real estate business the top selling agent in the office specialized in distressed properties. She would keep her eye out for these properties and purchase one, make necessary repairs and upgrades, and then sell the property at the new market value, often making tens of thousands in profit.
The key to maximizing your investment with distressed properties is the ability to do a lot of the work yourself. Sweat equity can help give you a higher return on your investment. You do need to make a wise initial investment. If a property is going to take more time and resources to renovate than you will ever be able recoup give it a pass and find something else.

Distressed Property History & Civil Business Politics

I would like to find some nice distressed property to fix up. The problem I have right now is getting to a positive income flow. I know I have the ability to fix up a home and resale it at a profit. I do know with the housing market the way it is right now it is something I am not going to try for now.