Posted in Blog  
  on Oct 23, 2014

How to Find Distressed Properties

If you're looking for a prime property investment to rent to tenants, then knowing how to find distressed properties can give your income a real boost. Distressed properties are still everywhere in the United States. There are enough vacant homes that every renting and homeless household could have their own property and there would still be distressed properties left.

Sometimes distressed properties have so major repairs that need to be made. That's why driving through a neighborhood to see the properties and personally inspect them is such a key component to finding the right one. If you pay $40k for a home, but need to make $100k in repairs, you might not be making the best investment.



1. Get the addresses of your target properties


Even if a home is going through a foreclosure process right now, the property owner still has rights to the home. Get the address of the distressed property and access the local assessor's information. This will give you a lead to who the home owner is and how to contact them.

2. Contact the home owner directly with an offer


Most people don't like unsolicited offers, but home owners that have a distressed property might be the one exception to this rule. They're often under a lot of stress and praying for a miracle to happen. An offer, even if it is a short sale offer, might give them a little fresh air. Mail any leads that you've found for at least 2 months and be persistent.

3. Let the mailman help you out


No one knows the distressed properties in any given neighborhood better than the mailman. They know which mailboxes are filling up, the houses that have notices on the doors, and where families have issues forwarding addresses. By offering them a reward if you're able to close on a distressed property that they find, you'll have a lot of allies helping you out.



4. Avoid neighborhoods where banks own most of the properties


The whole point of purchasing a distressed property is that you're trying to make money from the deal. If there are a number of bank owned properties in a neighborhood, then that's not likely to happen because the area has essentially died. The best case scenario is to get the one property in a neighborhood that is filled with families and good jobs that are readily available.

5. Let the neighbors know who you are


If there is a distressed property in a neighborhood, the neighbors are going to want something done about it. Many distressed properties are unkempt, looked pretty rough, and that drives down property values. You provide a light at the end of the tunnel where values can be brought up. With your business card in hand, introduce yourself and you'll get plenty of useful information.

6. Leave a note


Sometimes leaving a note on the garage door is the easiest solution. If you've found a property and you're interested in it, then leave your phone number and website on the door and ask if they're interested in selling the property. You might just be surprised by the results.

Related

The Landlord Tenant Board: What it is and When it is Needed

Many times, there are issues between a landlord and a tenant that need to be resolved but are failed to do so, because both parties have gone too far with their actions, and have retaliated in the... More


How to Create a Residential Lease Agreement

Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place.... More


The Best Sites for Rental and Lease Agreement Templates

Many landlords find it difficult to write and draft a lease agreement. Since every State has its own general template, it can also be difficult to make sure your lease agreement meets all the criteria... More


The Best Landlord Associations for Landlords to Join

If you’re a landlord and want to manage your business in a better way, you should endeavor to get in touch with those industry experts who have the experience and the skills to help you do it. This is... More


Unpaid Rent

When you talk about the most common disputes arising between landlords and tenants, nonpayment of rent has to be there in the list. People rent their properties to earn money, and when a tenant... More


Section 8 Landlord Pros and Cons

If you have ever rented a living space and have had to move many times, you’d already know how difficult it is to find decent, affordable and secure living premises. A person has to deal with the same... More


Landlord Inspection Checklist: Rights, Letters, and Reports

Landlords across the state have the prime responsibility to make sure they inspect and up keep their property once they have rented it to the tenants. Inspections can occur monthly or yearly depending... More


Landlord Maintenance Costs and Responsibilities

Everyone knows that a landlord’s job is not easy. These folks have specific duties and responsibilities that they must perform in order to be fair. Being a landlord is not a position but it is, in... More


When to Withhold Tenant Security Deposit

Asking for a security deposit is quite common in property dealings. The reason to ask for a security deposit is to have something that would help a property owner recover some of their financial... More


How to Report Bad Tenants

Bad tenants are the worst-case scenario for any landlord; no one wants them, and if someone has them, they want them out in any way possible. There are times when landlords try as much as they can to... More