Troubled properties are one of the biggest gold mines in real estate. The problem is that most investors have no idea how to find them, and if they do, they are too afraid to get involved with them. This is a big mistake. If you’ve been avoiding problem properties, now is the time to really learn about them and what they can offer you. You could end up stumbling upon a niche property that will make you rich.
Problem properties are basically properties that an owner does not sell outright in a simple sale. A problem property may be tied up in court, it may be sold by multiple parties, it may have issues that need to be resolved, or something that makes it a little more complicated to buy than just your run-of-the-mill property. Here are some examples:
bankrupt properties – These are properties sold by the bankruptcy court. They are being sold to pay off the debts of someone who files for bankruptcy. The main benefit of these properties is the opportunity to buy at auction with little competition.
Divorce Properties – When a couple gets divorced, they may decide to sell their house so they can split the money. Many investors think that trying to buy a divorce property is a big hassle, since it involves dealing with two people and a lawyer, but since many investors shy away, this leaves little competition. Also, the sellers are motivated and the houses are generally well-cared for, making it a great situation for an investor to make some good money.
Probate Estates – Probate property is property left over when someone dies. These properties are usually left to an heir who does not want the property and is very willing to sell it quickly at a great price.
unproductive notes – Properties where a loan is 90 days or more past due. Homeowners may not want to sell, but can’t pay their mortgage. They provide a unique opportunity to make a lot of money for an investor willing to spend time doing research.
foreclosures – Foreclosures are a popular problem property, but they are still a great investment. Foreclosures are properties that are about to go up for auction and if you can jump on them at the right time then you can make a lot of money on your investment.
These are just a sample of the properties that are considered problematic properties. Many investors want to invest simply, but the real money is in troubled properties. That’s because many investors don’t want to spend time with them. This leaves the door wide open for an investor to actually make some money. Problematic properties may require a little more time and effort, but the payoff is amazing. If you choose a specific type of problem property to invest in, you will soon become an expert and buying and selling your chosen type of problem property will become a great investment career for you.