Over the past 30 years I have had a few properties that have been classified as "handymans". I normally have three to four clients looking for these properties, so they are most often under contract before the ink drys on the listing. Handymans, distressed homeowners - is this your destiny? Lets look at the numbers:
1. I am a pre-license instructor for the state of Illinois and many students tell me they are getting a license, so as to be able to make investments in distressed properties. What's the problem - no motivation for learning what is required to be a licensed real estate agent. They usually require multiple seatings to pass the exam.
2. John Q Public thinks that they will have an inside track to a fortune in distressed properties. Read second sentence again in first paragraph.
3. Distressed properties may be owned by a bank and this requires negotiations. Not take my offer or forget it. Newbies to the real estate world are most often nieve, because they attend cocktail parties and hear war stories that are on the most part a little exaggerated.
4. When the Newbie becomes successfully licensed they venture out into the unknown without doing their homework. I like Newbies in this regard because my client (distressed owner or buyer) sees that I can make a successful offer spite competing bids.
5. The very experienced flipper is not the norm, but they do acquire intelligence over time (much faster when using a profesional).
6. Most flippers don't have their heart in it. They are expecting to see properties that require vacuumng the rugs. If the required investment is under $10,000, this is not a prime flipper property.
7. The real flipper does the work themselves (a group larger than 3 can't make it work).
8. Don't buy foreclosures. Use an agent and find properties that are likely to produce a profit.
9. Establish a line of credit of $200,000 plus (if you can't do this you are going to have problems. Perhaps you can pledge some security to your broker to secure the deal - Your Great Grandmothers dining room set (check Antigues Roadshow first).
10. Successful real estate transactions for distressed property are no problem when acting on experienced information.
If you desire to spend your money for profititing in rehabs, Call me or take your chances, your a big boy!
What ever your experience level, using a professional usually costs next to nothing. I can produce properties that presently will return $4,000+ after commission.
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