Investing in Distressed Real Estate

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A fast growing trend in today’s rocky real estate market; buy a house, flip it and sell it quickly to earn a lucrative profit. In today’s real-estate market you have to be smart about the purchase you make and do your homework. Choosing the right neighborhood, a home with good bones, a large lot, and quiet street are key factors in producing a profitable investment. Choosing a home in sketchy transitional areas and over improving for the type of market can leave a real estate investor with a property that stays on the market, causing the investor to loose profit and have to lower his asking price below market value. Flipping properties is a risky business that can pay off handsomely or leave the developer in financial distress. If I were given 150,000 dollars to invest in a distressed real estate purchase, I would start by securing a knowledgeable realtor on investment properties. Next, I would look for a single family home, with an open floor plan, three bedrooms, two baths, in a desirable neighborhood and priced at least twenty percent below market value to get the best deal. In order in get a larger lot and more square footage at a nominal price, I would look at foreclosures and short sale homes with good bones. Once I found a home in a nice neighborhood near a great school district and large yard, I would place an offer contingent upon a satisfactory home inspection and three percent closing cost assistance. Securing a property before any other buyers knew it was on the market would be a top priority in order to avoid a bidding war and paying more money than necessary. Once I purchased a suitable property, I will start planning my flip by making a timeline and setting a budget. In the budget, I will include carrying cos... ... middle of paper ... ...nt profit. In the world of real estate, the road to riches can be rough, but with a smart plan, a reasonable timeline, creativity and great work ethic anything is possible. Works Cited 1 Kemp, Kristin. "Kristin's Tips." TLC: Property Ladder. Discovery Communications, 8 Sept. 2008. Web. 4 Nov. 2011. http://tlc.discovery.com/fansites/propertyladder/about.html. 2 Conor, Cayden. "How to Enclose the Carport to Make an Additional Room | EHow.com." EHow | How to Videos, Articles & More - Discover the Expert in You. | EHow.com. Demand Media. Web. 10 Nov. 2011. http://www.ehow.com/how_4886797_enclose-carport-make-additional-room.html. 3 From, More. "Adding a Portico : Archive : Home & Garden Television." HGTV - Decorating, Outdoor Rooms, Landscaping Ideas, Kitchen and Bathroom Design. Web. 10 Nov. 2011. http://www.hgtv.com/home-improvement/adding-a-portico/index.html.

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