Helping Distressed Homeowners while Making a Profit

[Taylor Wesley Davis]

I know this title may seem cold hearted or cruel, but I’m looking for honest advise here. In my area there are a lot of, what I would consider, distressed homeowners. They are either in pre-foreclosure, foreclosure, or have let their homes fall into disrepair due to lower income jobs. What is the best way to use this situation to both help the distressed homeowners, and my own family, by offering to buy their home? Do you offer fair market value based on comps knowing the profit margin will be slim, or do you make them an offer that will still put money in their hands, but will give a better return on investment from my end? I want a good reputation in my area, but I also want to make sure my family is taken care of. Any advise is appreciated!

[Minna Reid]

If you want to be a successful real estate investor, you cannot afford to buy at market value. The profit margin is your income. Yes - you will offend some people and they wont like you and will consider you scum and they will say so - to you and others. Others will appreciate the value you bring as an investor to solve their problem quickly and easily without hassle (even if they get less $). Not everyone's motivation is money. That is the nature of the business. However, if you can't stomach the thought of offering less than market value, you should consider a different line of business. If you just want to help distressed folks sell, then you may want to become a Realtor.