5 Sticky Real Estate Situations That Offer Investment Opportunities

3

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.

Related: How To Find Out Your Buyer’s or Seller’s Biggest Problems Every Time

How to Invest in Real Estate While Working a Full-Time Job

Many investors think that they need to quit their job to get started in real estate. Not true! Many investors successfully build large portfolios over the years while enjoying the stability of their full-time job. If that’s something you are interested in, then this investor’s story of how he built a real estate business while keeping his 9-5 might be helpful.

Click Here For Your Free eBook!

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.

Related: The 10 Best Real Estate Investments for Smart Real Estate Investors

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.

Conclusion

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.

About Author

Kevin Perk

Kevin Perk is co-founder of Kevron Properties, LLC with his wife Terron and has been involved in real estate investing for 10 years. Kevin invests in and manages rental properties in Memphis, TN and is a past president and vice-president of the local REIA group, the Memphis Investors Group.

3 Comments

  1. I like where your going with this. I work with preforeclosures a lot but the circumstances for what causes it are recurring themes. Such as death, divorce, job loss, car accident and long term settlement which contributes to one or more of the others previously stated. Because of how difficult and time consuming these are, not many people are doing them locally but I find some of the best deals this way. Just learn to know what you can and cannot work with and at the very least be able to point them in a direction or give some advice of how they can minimize the impact if you are not able to help.
    One of the side benefits of working with these is I found a niche market that requires less money, less time, and a faster turn around for smaller profit. But the ROI is usually at least 30% and I’m getting more of these kinds of deals now that I’ve made realtors aware that I can take care of this problem and help them close deals on aging inventory. So my advice, talk to people, especially those currently in the industry. Find out what kind of problems they are having and see where you can place yourself to fix those problems. When you become the go to person for making things happen, business will come your way. I went from handling 1 or 2 at a time to now we currently have 3 and are working on picking up 2 more. That’s all happened in the past 6 months.

    • Kevin Perk

      Congrats Roy!

      Good for you for finding out what people need/want and supplying a service. That really is what real estate investing is all about. And like you said, if you find a good niche, the returns can be great.

      Thanks for the comment,

      Kevin

Leave A Reply

Pair a profile with your post!

Create a Free Account

Or,


Log In Here

css.php