Distressed properties are often incredibly cheap and can be traded for a large amount of cash. Funny how one man’s trash is the next man’s treasure. A real estate investor may discover potential in these properties while the seller just wants out. That’s how you make tons of cash, my friend.
My favorite thing to do with distressed properties is rehab them for massive amounts of capital and cash flow. When you buy cheap, you don’t owe much on the house, you do some repairs, and the money coming in from renters exceeds the mortgage, giving you tons of cash flow. Cash flow is the money you make while you sleep, and I know you like the idea of getting paid while you sleep.
For example: I bought a house for $15,000.00 that was worth $130,000.00. I spent $50,000.00 on repairs which put me in a great capital position. I invested $65,000.00 in a $130,000.00 house… It was amazing! My tenants pay me $1,200.00 per month and I can sleep at night knowing that checks arrive in my mailbox every month. By the way, a 65k mortgage costs less than $600 at an interest rate of 7%.
Where can I find distressed properties?
There are so many ways to find these distressed properties and turn them into sources of income. You can drive and search houses, you can send letters or put up flyers. Everyone has a different way. Personally, I think the easiest way to find these deals is through a wholesale investor. Wholesale investors make a living finding these types of properties for other investors who are in real estate for the long term. They spend hours and hours of their time strategizing to find these properties and basically giving them to their buyers.
So what’s so great about these wholesale investors?
Hey, if you just want to get down to business and start working on these properties, then there’s no easier way than having a wholesaler send deeply discounted deals straight to your email every day. These investors work day in and day out to find these properties, and a quality wholesaler will provide you with the right contractors, private lenders, and even neighborhood offsets. You have the option of receiving these offers for a small fee or you can drive around looking for these homes yourself. Wholesalers will charge a small assignment fee, but you will be buying properties that will generate huge profits for pennies on the dollar.
