A question that is often asked by first time investors is how can one make money from distressed house sales.
Basically, there are two main ways. One way, is to buy at auction from a sheriff or insolvency at below market rates, and sell it at market value or above. Alternatively, you can set up an additional stream of income by buying distressed properties and renting them out, providing you with annuity income.
But is it that easy? Can you just waltz along to an auction, pick up a property for peanuts, and start making money from it? Well, obviously not. If you are going to make money from distressed auctions you have to have a plan. Here are some tips to make sure it works for you.
First and foremost, don’t think you’re the only person who has had this bright idea. If you’re going to get good deals, you’ve got to ensure that you are constantly ahead of the game and ahead of the competition. Be vigilant, and keep an eye on auctioneer’s websites, where the notices will go up before they have appeared in the newspaper. Alternately, use a recognised house listings web site which is updated at least on daily basis.
Remember what they say – the three most vital things to look for in a property are location, location and location, especially if you want to make money from the property. Location is a far more important factor than the condition of the property. In fact, if you want to make money from distressed auctions, buy the worst property in a good neighbourhood, never the best property in a bad neighbourhood. Bear in mind that you can improve the condition of the property but you can’t change the location. The factors you should be checking on in the neighbourhood include safety, schools and transport links.
Thoroughly do your research on legalities and ensure that the property doesn’t come with large arrears rates, taxes and levies, which you could be liable to pay. Do the existing owners or tenants still live there and, if so, are you going to be faced with costly eviction proceedings? Also be aware that with some tenants, the process to evict them if they are not paying the rent may be lengthy and tricky.
Distressed auctions provide individuals with the platform to makes serious money, and in over 20 years in the auction industry, I have seen investors make killings. However, it doesn’t just drop into your lap, and it’s not an instantaneous get rich quick scheme. If you go about it in the proper way, and work with the right auctioneer, you’ll find it to be a highly profitable and lucrative form of investment. Let us show you how to make a profit on every deal and grow a portfolio of trading stock or solid long term investments.
For more information contact 0860 Alliance or Email me on email@example.com