You see these properties around you every day, but you probably aren't accustomed to seeing them as an opportunity to earn extra income on the side to support your ministry.
Let's discuss this.
So, what is a distressed property?
Here are common exterior signs that could indicate distress:
- Grass overgrown/landscape deterioration
- Trees hanging down into the yard
- Significant peeling paint/fascia damage
- Boarded up windows/very old windows
- Siding/brick deterioration
- Loose/missing shingles
- Trash strewn across the property
- Mail overflowing from mailbox
- Garage door in disrepair
This list could go on, but you get the idea. You're looking for properties whose exterior shows that the home probably needs some work. Often the exterior gives you a good idea of what the interior is like.
Distressed property owners sometimes want a cash-paying investor to get involved as they know their home is not in retail condition to sell on the market to a retail buyer using traditional financing. And in many cases, they don't want the hassle of fixing it up to get it retail-ready.
So, what should you do when you find one of these?
Well, you have a few options.
- Reach out to them. Ask if they'd be interested in selling. If so, find an investor in your community that pays referral fees for properties & refer it to them. Often investors will pay $500-$1,000 if you refer them to a home that they end up purchasing. You can find investors like this at your local REIA (Real Estate Investors Association).
- If they're interested in selling it for the right price, buy it yourself & "Quick Flip" it to another investor for a profit.
- You could also buy it yourself, do a light cosmetic flip to make it retail ready, and then put a For Sale by Owner sign in the yard.
- The most time-consuming option (but potentially the most profitable) is to do a full fix & flip yourself. Buy it, do a full rehab, then sell it for top dollar For Sale by Owner or with a Discount Brokerage on the market (where they charge you a flat fee, not a percentage, to list it).
Keeping your eye out for distressed properties is a great way to consistently make extra income on the side to support your ministry!
