Where Homebuyers See Deal-Breakers, Investors See Dollar Signs
What should investors look for in a listing? The answer might surprise you.
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When you first get started in real estate investing, knowing what to look for can be a challenge.
The truth is that while searching for investment properties, you need to take off your “homebuyer hat” and start looking for listings that show signs of distress. Properties that are already perfect won’t pose nearly as great of an opportunity as those that could use some fixing up.
In general, there are three key things investors should look for in a property. Though these things might scare a typical buyer away, knowledgeable investors will see a property’s flaws as a chance to make money.
- Termites. Of course, you don’t want to put all of your money into a home that’s infested beyond repair, but a small amount of termite damage shouldn’t cause you to turn tail and run from a property that otherwise has potential.
“Knowledgeable investors will see a property’s flaws as a chance to make money.”
- Settlement cracks. Small cracks don’t always represent major structural problems. Being able to look past issues like these will allow you to corner opportunities that other investors are too afraid to touch.
- Offensive odors. A listing that reeks of animal urine or cigarettes will scare off most potential buyers, but seasoned investors know that these unpleasant smells represent major value. Investors can easily purchase a malodorous property at a discount, fix it up, and then turn a profit once they’ve eliminated the issue.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.