Distressed Properties Shouldn’t Distress You.

For many real estate investors, the best investment they will ever make is in distressed property. You know the ones. They look tired. They are ill kept. They feel worn. Not the investors, the properties.

The best reason for considering distressed properties are that they need change, and making a needed change is very positive for the buyer. The reason a property is distressed is because of bad management, poor maintenance, low quality occupants, dated components, etc. In each of those cases, a little change can make a big difference.

After the purchase, elbow grease is often the biggest investment that needs to be made. With a few hours work in a yard, the curb appeal can be improved dramatically. With a couple days work and a bit of paint, a tired look can be updated and improved. With a logical plan, management can get rents collected, remove problem occupants and increase revenues dramatically. With a wise capital improvement plan, increased rents can be used to reduce operating expenses and pump up the NOI.

In all cases, if you can reverse the distressed trend of a property, you can improve revenues, reduce expenses, increase value, build equity and create wealth for yourself. Unfortunately for many investors, they cannot look past the flaking paint and the cracked windows to recognize the gold covered opportunity within. Don’t be one of the many would-be investors who look back and say “I shoulda bought that when I had the change.” Do your homework, perform the due diligence and the profit potential will be obvious and the ultimate wealth development will be yours. Get the education you need, the help to make it happen and the opportunities will drop one at a time like yellow metal ducks in a carnival shooting gallery. Good Luck. If we can help we’d love to.