Distressed real estate can be beneficial to investors who know how to make something out of nothing, and who like to help people. A lot of times when people are dealing with hardships and can no longer afford their mortgage, they may look to people who understand real estate to help them out of their situation. This could mean huge potential for investors.
If a property is behind on payments, if a homeowner can’t fix up their property, a family member passed away, a couple is getting a divorce, filing bankruptcy, or one of them has lost their job. All these situations can create uncertainty when it comes to making payments on time on a property, maintaining it, etc. and that’s where investors can come in.
If we know someone is behind on their payments, the first question is why, the second question is how far behind. From there, we can determine if there is a way for us to create a win-win, where we can help the homeowner and potentially make a profit simultaneously.
Pre-foreclosures, foreclosures, short sales, discount notes, liens, auctions—these are all just some examples of opportunities where we may be able to get properties at a discount that can then turn into something beautiful. Maybe we acquire a short sale by taking over payments, renovate the property and then offer it as a rental or lease option to a new potential homeowner. In this case, we will have helped the homeowner out of their short sale situation, acquired an asset at a potential discount, and profited by offering a new opportunity for someone needing a home. Win-win-win.
We at Legacy believe distressed real estate is on the rise. As the market balances out in the coming weeks, months and years, we can teach you what you need to know to be able to take advantage of what’s ahead, while helping people through what may be their most difficult times.
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