How Buying Distressed Properties Can Revitalize A Neighborhood And Make You Money
Posted on: 20 November 2017
In 2008, the housing market crashed, and many banks collapsed. This result in the value of homes depreciating and homeowners not being able to make payments. Ultimately, many real estate properties went into foreclosure. These series of events resulted in neighbors becoming practically abandoned. Read on to find out how buying distressed properties can revitalize a neighborhood and make you money.
Look For Distressed Properties
Distressed properties are an option when you want to save money, when willing to make repairs and invest in land clearing services. They are homes of owners who cannot maintain them. These properties usually suffer from neglect, in poor conditions and at risk for foreclosure from non-payment of taxes and mortgages.
To find distressed properties, you will have to drive around to find a target neighborhood. It helps to write down the address after finding a potential property. You can get the name and address of the property owner from your local tax assessor's office. Contact information is necessary for asking the owner about buying the property. It is also used for writing a letter to the owner to ask about making a purchase.
Distressed properties are often sold at below-market rates. To save on the property, you will need to directly contact the owner. Many owners are out of town and do not want the responsibility of maintaining the property.
Establish A Budget For Someone To Clean Up The Property
If you buy a distressed property, then you may need to clean up the land. For example, you may have heavy brush, overgrown trees, vegetation and trash that has accumulated over time. It helps to invest inland clearing services. This service have the right equipment to remove the debris and overgrown vegetation that has taken over the property.
Get Your Property On Housing And Urban Development (HUD) Assistance Program
Many of distressed properties are in low-income neighborhoods. You can buy a whole block of properties for an affordable price. If you want to protect your investment, then it helps to get on the HUD assistance program.
You will need to go to a local office to get a Request for Unit Approval application. This application collects information about your price, location and amenities. The HUD office will tell you what steps to follow for getting your application approved.
If you are approved, then you will directly receive a Section 8 voucher for 30 percent of the monthly rent. You are responsible for collecting the other 70 percent and any other fees directly from your tenant.
The housing market is another thing that attract people to a city. If you have the finances to buy several properties, then you can revitalize a neighborhood.Share