Buying Distressed Properties For Pennies
A few days ago, I sent an email out regarding buying distressed properties. I wanted to show you a quick glimpse of some of the deals we are seeing and doing. I show you these numbers not to brag, but so you can see what kind of opportunity is out there in the marketplace. And you’ll see that you don’t have to have a lot of money to turn a quick profit and quadruple your investment.
Over the past 2 years, we’ve been using this strategy to buy and sell distressed properties. We’ve bought and sold over 500 properties this way and with what we are seeing, there are no signs of slowing down any time soon.
Here are some of the properties we’ve sold recently…
Now this doesn’t get exciting until you see all the numbers!
Here is what all the numbers look like…
Now you can see why I get so excited about this.
Let me explain some of the numbers. As you can see from our spreadsheet, $819 was the most we paid for a single property. On average we invested about $575 per property. We sold these 10 properties all within a 2 week period. Typically we sell between 3 – 5 properties per week.
We hedge our investment by charging an extra $500 as a deed fee which is handled at closing. This way we are in essence covering the majority of our purchase price so our risk is very small. And that’s what we want. Very small risk.
After all expenses are paid, over the last two weeks, we profited almost $30,000 for very little work. We average about 3 – 4 hours per property with all the research that’s done finding the property and then selling the property, posting pictures, marketing, etc.
One question you might ask is, “What is stopping us from doing more?” The answer is nothing. We plan on it. We may even bring in some bird dogs who want to partner with us and do a 50/50 split. We haven’t decided yet.
On occasion, you will come across some absolutely incredible deals. Almost to good too be true type stuff. And when I say on occasion, I mean it happens quite a bit when you are doing volume. On this last go round, we picked up a property for $800. Once we did a little more digging, we realized this property currently rented for $875 a month. Property is beautiful, needed no work. The tenant has been living in this place for the past 20 years. It is SEC 8, guaranteed rent every month.
Recently, we were offered $60K for this property and turned it down. Sometimes these properties are better to keep for building long term wealth. We have a property management company that takes care of the place and everyone is happy.
Here is a picture of what the house looks like.
There is nothing special about this house other than it’s located in a nice neighborhood which is a big deal for investors. So if you plan on buying distressed properties, you’ll usually get better prices depending on the location.