| When you enter the world of real estate investing, one | | | | huge income, you can also lose a great deal of money |
| of the phrases you'll always hear aside from "location, | | | | if you buy the wrong type of distressed properties for |
| location, and location," is "buy low, sell high." As the | | | | sale. |
| name implies, the principle of "buy low, sell high" simply | | | | 2. If you are considering rehabbing distressed |
| means obtaining investment properties with low price | | | | properties for sale, carefully choose the house you're |
| tags and then selling them at a much higher price. But if | | | | going to fix and flip. As much as possible, pick those |
| you do it the other way around, chances are, you'll be | | | | that require minor repairs and small patch-up jobs. |
| filing for bankruptcy instead of converting fat checks | | | | Don't attempt to rehab a distressed property that |
| into cash. | | | | requires a major overhaul like those that need a new |
| One of the easiest ways to observe the principle of | | | | roof or an updated plumbing and electrical systems, |
| "buy low, sell high" is to invest in distressed properties | | | | unless you have enough cash on hand. |
| for sale. A distressed house is simply a property that is | | | | 3. When making an offer to a financially troubled |
| under a foreclosure order. There are two types of | | | | owner of a distressed home, don't be afraid to ask for |
| distressed properties: one that is in bad shape and one | | | | a lower buying price. Owners of distressed properties |
| that is in good condition but has an owner with deep | | | | are in a hurry to get rid of their properties in exchange |
| financial problems. Because of the physical and | | | | for cash and they are likely to accept your offer, no |
| financial problems attached to such houses, they are | | | | matter how high or low it is, as long as you quickly |
| usually sold at very low prices. | | | | close the transaction. |
| If you want to build your real estate empire on | | | | 4. Because of their affordable prices, distressed |
| distressed houses, here are some of the things that | | | | homes are selling like hotcakes. Make an offer |
| you should know about these properties: | | | | immediately to prevent other investors from taking a |
| 1. While investing in distressed homes allows you to | | | | hold of the property that you want to buy. |
| practice the "buy low, sell high" principle and generate | | | | |