Are you getting the itch?
Or is the itch hard to resist and you feel the need to scratch it?
If so, you're not alone. No matter how you go about scratching that itch to jump into distressed real estate you are in good company. When you look around and see amazing prices for foreclosures and short sales in Chicago, it is hard not to feel the need to 'jump on board to get a great deal on some piece (or pieces) of real estate.
With properties selling for as much as 80 percent off, it surely seems like a once-in-a-lifetime opportunity.
Yet for everyone who has ever bought investment real estate, they will tell you that be careful how you scratch that itch to invest in distressed real estaet.
Distressed real estate, depending on the level and type of distress can be worrisome at best and painful at worst. The process can be annoying, frustrating, challenging, burdensome, time-consuming, rewarding, profitable, uplifting, debilitating and even hazardous to your health.
As well see in future posts, there are many facets to investing in distressed real estate and it is best to match your level of knowledge, your available time and your depth of resources (spelled as CASH), to the type and condition of property you would seek to buy / invest in.
One of the biggest mistakes first time or early-on investors make is to take on a property / project that exceeds their capacity, resources and skillset.
If there is one thing to take away from the 'possibility' of investing in real estate, especially in this market, is go slow. There will be more rehabs, remodels, and flips to invest in given the real estate market across the majority of the country. Better to breakeven or maybe lose a few bucks on the first project and gain valuable experience than to go in too deep and lose all your financial resources first time out.
Michael Hobbs, PahRoo Appraisal & Consultancy
Immediate Employment Opportunity: Chicago or Suburbs Certified Real Estate Appraiser, compensation $50,000 - $85,000