Finding a Distressed Property
I’m sure many of you have seen the shows on TV, that show people buying distressed properties. Many of these people have the goal to either do the work themselves or farm the work out to companies, and then flip the home for a profit or rent it out for additional income. What you may not realize, is many of these distressed properties are cash transactions and they are sold “as is.” Sometimes these distressed properties only allow it to be viewed by driving by. Some of distressed homes are short sales and require a longer time to close since the bank (s) have to approve it. The buyer should be aware of the time frame involved. Once you have an accepted offer, have it inspected by a licensed home inspector. The inspector will walk around the inside and outside of the property creating a detailed list. This list includes items that need repairs, items that must be brought up to code and structural defects. Also before doing any renovation(s), check with the local municipality to complete the necessary paperwork. Once you are given the permits, you can move forward with your projects. Remember to have all the permits closed out and a certificate of compliance or occupancy issued. Open permits can hold up a closing. Your licensed real estate agent will help you with any questions. When you are ready for the property to hit the market, your real estate agent will assist you in finding a buyer or potential renter.