Buy A Fix-n-Flip or A Distressed Property?
By Pierre Mouchette | Real Property Experts LLC
Many new investors are excited about obtaining their first ‘fixer-upper’ and think of the ‘infomercials and reality shows’ that boast of turning a quick profit. However, fixing-n-flipping is not the easiest or best way to make money in real estate because it can be costly, and the risk is very high.
Do you know the difference between a distressed property and a fixer-upper? You may think so, but there are many misconceptions about these terms.
Problems with Fix-n-Flips
What’s the problem with a fix-n-flip?
Distressed Does Not Mean Lots of Work
When you hear the word distressed, you may envision a run-down, bleak home that would require thousands to fix-n-flip. However, that is not the case. The term distressed is not a description of the condition of the property. It just means that the property owner urgently needs to sell. The explanation of distressed property is a pre-foreclosure, foreclosure, short sale, or other transaction where the owner is in distress and not able or willing to pay for the property.
Can distressed properties be run down and in need of significant repairs? The answer is yes, but always remember, you CAN sell a distressed property with only some cosmetic repairs.
Words of Caution - Real Estate Gurus
The difference between this ARTICLE and those late-night Gurus is that they promise you will make a fortune in real estate by buying their complete system (of five (5) 300-page loose-leaf binders, ten audio CDs, etc., or a three day $7,000-dollar course) is