Distressed Properties

Written by Linda Alexander
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Distressed properties are called so because of any number of problems. They present a great investment opportunity for knowledgeable investors. The key to making a profit in distressed property is to do your homework.

Properties might be "distressed" because of serious disagreements between owners (divorce), environmental contamination, unpaid real estate taxes, property involved in a bankruptcy case, municipal code violations, or disputes between landlords and tenants. Distressed property might involve complicated legal and financial problems, which might make the price look attractive, but could lead to sizeable expenses later on. Therefore, you should consult a competent attorney to help you through the transaction.

Closing Distressed Properties Quickly

Timing is critical with purchasing distressed properties. Therefore, you must have funds available and the ability to close a deal quickly. Otherwise, your competition for the property may sneak in with a better, more immediate offer. This is especially true with foreclosures at auction.

There are great opportunities to buy and sell distressed properties. Be sure you do your homework on them before you involve yourself in a deal. And have competent professional assistance; this will make all the difference in your transaction. But so long as you have knowledge and professionals at your side, flipping distressed properties can be a very lucrative venture.

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