As real estate investors, we need to be ready to come to the rescue. Property owners can find themselves in some truly complicated situations with no idea how to get out. If you can be a “knight in shining armor” and solve their problem, many times you can get a pretty nice deal.
These problems can either be of their own doing or through no fault of their own. They could have popped up yesterday or have been brewing for years. Either way, being able to tackle these types of problems can give you a big advantage.
So what kinds of real estate problems am I talking about? Here are four different types.
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5 Real Estate Problems Investors Can Alleviate
1. Title Problems:
There are all sorts of problems that can cloud a title and thus make selling or getting cash out of a property difficult.
Liens, deaths, taxes, etc. can all make a mess of things. Learn how to clean these things up and get a clear title, and you will open yourself to deals that others will simply pass over as too difficult. Be warned, though: title issues can be time-consuming and require a lot of negotiation. So be ready to stay in for the long haul before you dive in.
2. Code Enforcement Problems:
Code enforcement can be a real bear in some jurisdictions. Their fines and bureaucratic bumbling can really make a mess of things. It can be vexing, but if you can learn to get through the bureaucratic maze and untangle the red tape, you can reap some great rewards.
3. Probate Problems:
A death can tie up a property for years. Families can and will do very strange things when other family members and money is involved. Understanding the probate process where you live and becoming a skilled listener and negotiator may set you up in this potentially lucrative area.
4. Fire Problems:
Unfortunately, fires and other disasters happen. These tragedies can be really difficult on property owners. Some will simply not know what to do — or where to turn.
Be ready to step in and solve their problem. Have the ability to buy properties “as is,” no matter what their condition. Many other investors will not touch severely damaged properties. And honestly, if you are new to real estate investing, you should not either. But if you have the experience, this can be a potentially lucrative niche.
5. Trash and Junk:
Some people are hoarders and just can’t throw anything away. They let it pile up for years and years. They get embarrassed and put their heads in the sand, hoping the problem will just go away. Be there to help make that problem go away. Never be judgmental; again, just be ready to take the property as is. Be warned, though — you may not be able to see all that you are getting into.
Getting people out of tricky real estate situations is often not very easy. It can require specialized knowledge and a commitment of significant amounts of time and energy. However, the gain can be spectacular. Plus, you might just be able to carve out a specialized niche for yourself and become the go-to person in particular situations.
Always remember that part of being a real estate investor means being a problem solver. To make money in this world, you have to give people what they want, and many people want a specific problem to go away. Many will pay a premium for you to come to the rescue.
So learn to become a problem solver. Become a detective if you have to. Hang out at probate court. Take code enforcement inspectors to lunch and learn the maze. As I have said, all of this may take some effort, but the rewards can be great.
What is the biggest real estate problem you helped solve?
Please share with your comments.