Run Down Property Investments

What is a run down property and should you invest your time and money into it?

First, I have to admit that not all of us are handy when it comes to serious renovation, and renovating a run down investment property, but I have to tell you, even though you may not be a real handy-man, you can hire one to help you fix the property.

Run down houses are usually an excellent opportunity for someone who is willing to spend time and money on renovating a property in order to sell it for a large profit once the right time comes.

Finding an investment run down property: work with a real estate agent

It's advisable that you work with a good, and free spirited real estate agent (almost wrote an angel), who is willing to pin-point a really good opportunity. Pay a good attention to details that agent is presenting to you, since it may happen that in addition to fixing the property you may have additional problems with it, and honestly you don't want that.

What you want is a property that you can quickly fix, flip and then focus on the next one, or in case you are fixing it for your family then especially you want to make sure everything is good with your property and land.

If you are investing into resale properties, then as time progresses, you can start investing more time on each property and adequately follow with increased profit on each.

Get appraiser / professional surveyor

Another way to find a property: look around neighborhood. If you find a property that looks like a run down home, you want to get appraiser involved to make sure your investment is sound and realistic. Appraisers usually charge around $200-300, but definitely they know very well what and why they say, rarely they make mistakes, and if they do that's less than 5%, when it comes to a property assessment value.

Losing $200-300 is way less than losing the whole investment or being held/blocked with investing into a property that can't move forward due to various possible legal, property or land issues.

Do not rush into closing a deal quickly, and do not work with a real estate investment agent who is putting a pressure on you to finalize the deal. You want to take enough time to make a sound and good decision for yourself. 

Learn how to identify a good opportunity with a run down property

Learning to identify good investment property opportunity takes time and you will only get better with each new property. That's why it's good at the beginning to focus on resalable properties, which need minor cosmetic touch-ups. That work is easy to do and chances to get stuck with that property are minimal. At the same time you will learn a great deal during that time.

Be humble, respectful and honorable investor

Usually run down properties get happen due to a negligence of the previous homeowner. Many reasons are why those things happen, but you may be dealing with an owner who has to sell a property and is willing to work with you on different options and possibilities. Again, do not rush, and do not make prejudgments, or early conclusions. Listen and explore how you can quickly fix and sell a property.

Be honourable and respectful in your approach, and you will go far. It's a joy working with good people. Many homeowners of run down homes may have financial problems, but do not take advantage of those situations. Keep a good karma.

Bare in mind that not all run down properties are worthy investments. Make sure you have all carbs on the table when you are ready to make a decision.

Good luck with your investments and thank you for reading. Your comments are welcome.