If you’re an investor, distressed properties can provide some wonderful investment opportunities which provide a win-win since these transactions provide you with a chance to help homeowners who need to move the property quickly.
But what is a distressed property? And why are these properties a good investment? Great questions!
A distressed property can take a couple forms.
Some distressed properties are “distressed” due to poor condition. The home may be run-down and in need of major upgrades and improvements. This type of property is a wonderful investment if you can get the home for the right price and then perform a fix and flip.
Another type of distressed property is one with a homeowner who’s “under water” and behind on the mortgage with no chance of “catching up” and getting current on the home loan payments. As a result, they may be facing imminent foreclosure.
The property owners may also be “upside down” on the house, meaning they owe more than the home is currently worth on the open market.
In all of these scenarios, the property owner is seeking to sell the property, usually in a prompt manner. In the case of homeowners who are behind on the mortgage and/or “upside down” on the property, they typically need to sell the home as soon as possible in order to avoid further damage to their credit due to a foreclosure.
Typically, homeowners are willing to accept a lower price for a distressed property due to its poor condition or due to the fact that they need to sell the home quickly and don’t have time to hold out for the perfect offer.
When an investor buys a distressed property, it’s a win-win for both parties, as you get the property for a good price and the homeowner is freed from the burden of a home that they can’t afford or don’t wish to care for.
If you have a distressed property in Chicago or the surrounding region, Teele Enterprises, Inc. is here to help! Take a few minutes to complete our distressed property questionnaire to help us learn more about your situation so we can work to help you more effectively.
You can also call Teele Enterprises, Inc.’s founder and CEO Greg Teele at 224.343.6890.