Distressed Homes Can Become a Major Investment Opportunity
- Author Kevin Schmiterson
- Published February 22, 2012
- Word count 402
In today's real estate market, there is a glut of homes on the market. That is just a fact. However, how do you classify a distressed home? A distressed home can be one of two things. The first option is the house can be a home that has set for many months unoccupied and allowed to deteriorate. Another definition is one where a homeowner is under stress because they cannot keep up with their mortgage payments. In either case, an investor can come in and make a profit off the property. In many cases, it requires investing some money towards repairs and upgrades. However, in the end, the new owner can either rent it out or sell it for a profit. A company doing just that is Liberty Asset Management.
Many current homeowners are underwater with their mortgage. When the economy began to sink, home prices took a nose dive. This is true all over the country. Many homeowners find they owe on a mortgage that is much more than the true value of their home. Some lost jobs in the downturn also. Some cannot keep up on payments. This all puts homeowners under a great deal of stress. They may abandon their homes or let them fall into pieces before foreclosure. A company like Liberty Asset Management purchases these distressed homes and renovate them. Sometimes they sell them. Other times they rent them out.
It is a real investment opportunity to purchase distressed homes and renovate them. This is what companies like Liberty Asset Management do for a living. They find homes where the owners have abandoned their home due to financial problems. They also find foreclosed properties. These properties offer you the opportunity to renovate and sell them. You may add them to your portfolio and rent them out. It is a great option to invest in new opportunities. With low interest rates and high rental rates, it is a great time to do it work on make some extra money.
You can rent the property out or sell it for a profit. That is the beauty of buying distressed homes. You can keep the property for your own income use. On the other hand, you can sell it if you need a boost in cash funds. You have the choice. With the right investment vehicle, you will find that your cash flow will free up quickly with rental properties.
Take the example provided by Liberty Asset Management and become an investor in real estate.
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