Home » Powerful Ways To Find Distress Properties For Sale!

Powerful Ways To Find Distress Properties For Sale!

by janeausten
distress properties

If you are a newbie in the real estate market or interested in trying a new real estate investing strategy, you are most likely seeking Probate or Distress Properties for sale! And that’s mainly because distressed properties offer a great value and cash-out opportunity to investors in today’s market.

Although the future is unpredictable, investors on the verge of finding and closing on distressed properties today can benefit from these undervalued properties. But what is a distressed property? For people who have no clue what distressed properties are or why they are undervalued, spare a few minutes and read this blog till the end.

Here, we will discuss what a distressed property exactly is, the types of distressed properties, and some powerful ways to find distressed properties.

What are Distressed Properties?

Distressed properties are homes that are in a state of disrepair, owned by homeowners who are in financial distress and unable to keep up with mortgage obligations or pay property taxes. Such properties are usually either on the brink of foreclosure or already owned by the bank.

Real estate investors often seek these properties to grab the opportunity of purchasing a home at a discounted price. It is a great way for investors to increase their profit margins. However, not everyone can make money from buying Distress Properties for sale!

Distressed properties are not as easy to deal with as they sound. There are several risks associated with this real estate investing strategy. So, you should consider investing in distressed real estate only when you know how it works. 

What are the Types of Distressed Properties?

Also known as “underwater properties”, distressed properties can be found in every real estate asset class, ranging from single or small multi-family buildings to office and retail properties, apartments, and industrial or special use properties. They can also be found in real estate asset classes like raw and subdivided land.

Distressed Properties are Generally Classified into Four Categories and they are:
  • Properties under pre-foreclosure or short sale process
  • Properties under foreclosure process
  • Real Estate Owned (REO) properties
  • Properties under tax lien sale due to unpaid property or income taxes

Now that you have learned what a distressed property exactly is and what are its different types, let’s delve into the effective ways to find a distressed property.

How to find Distressed Properties?

In a competitive real estate market, finding lucrative deals on Distress Properties for sale can be intimidating until you know the appropriate places to look for them. To help you find attractive distressed property deals, we have enlisted some of the best resources below.

Property Sale Websites:

One of the best ways to find distressed property leads is to search online. Top websites that specialize in listing distressed properties include Flipscout, Listsource, Auction.com, etc. You may check these sites to locate profitable distressed property deals!

Bank REO Sites:

The next best way to find a distressed property is by going directly to the source. Due to a huge spike in foreclosures, most lenders are found to set up their own REO departments. So, looking at the bank REO sites or contacting a local credit union or community bank is a highly effective way to find distressed property investments.

Local Tax Assessor Office:

Default property taxes can be considered an early warning sign that a property is becoming distressed. And most local tax assessors’ websites record lists of properties with delinquent taxes to review. You can easily locate a tax assessor for a specific county by searching it on the web. You may even use the public records online directory to locate the offices of requisite tax assessors, treasurers, and county recorders.

Real Estate Agency:

Generally, distressed properties under pre-closure, short sale, and foreclosure are listed on the local multiple listing service (MLS). So, it’s a good idea to contact a local real estate agency that specializes in dealing with Distress Properties for sale!

Real Estate Wholesalers:

Real estate wholesalers have extensive years of experience and expertise in locating distressed properties, estimating needed repairs, determining after-repair value (ARV), and putting the property under contract. Basically, they can offer all these services in exchange for a nominal wholesale fee. So, if you want to find a distressed property for sale quickly, you can reach out to a local and reputed real estate wholesaler.

Government-owned Property Agencies:

Since government agencies also seize properties, you may seek government-owned distressed property for sale from government agencies.

Probate Attorneys:

The probate court is yet another great place to locate distressed properties for sale. In many cases, the legal heirs or beneficiaries refuse to keep a probate property. Thus, it stands to be a lucrative opportunity for real estate investors to purchase those properties at discounted prices.

Hopefully, this blog helped you learn what a distressed property exactly is, the types of distressed properties, and the effective ways to find Distress Properties for sale. Combining all these strategies can help you identify and target distressed property investment opportunities!

Related Posts

MarketFobs is an online webpage that provides business news, tech, telecom, digital marketing, auto news, and website reviews around World.

Contact us: marketfobs.com@gmail.com

@2023 – MarketFobs. All Right Reserved.