How to Buy a Bargain "Doghouse:" 18 Tips on Buying Distressed
Real Estate
by Jeanette Fisher
Published on this site: July 15th, 2004
What is a "distressed" property? What is "bargain"
real estate?
A distressed property is one with a distressed seller. Job loss
or transfer, divorce, death, pending foreclosure, and lack of money
cause sellers to sell fast for less. Discovering the seller's problem
and finding a solution is the key to buying a bargain property.
A distressed property may also be a "doghouse," a dump,
or a fixer. Owners of "doghouses" are not always distressed
sellers.
18 Easy Steps to Buy a Bargain House
- Get good advice from successful investors. Ask friends and
real estate agents for referrals to investors.
- Create your personal "Investment Journal," like Doghouse
to Dollars Workbook: Turn Yucks into Bucks Investor's Guide.
- Define investment goals: Do you want to buy a home to live
in, to fix and sell, or to hold for your future?
- Get credit reports & scores. Create a file for each credit
reporting agency. Take care of any credit issues.
- Read Real Estate investing books and articles. Attend workshops
and seminars. Avoid out of date infomercials on TV.
- Get good advice from lenders. Choose a lender with great service,
good closing record, and fair costs. Arrange financing.
- Define your target locations: Is your desired property near
home or job, vacation or second home?
- Learn your target market. Study real estate newspaper sections.
Pick up homes for sale flyers. Watch sales and note prices, amenities,
and conditions. Follow HUD sales in your area.
- Interview Real Estate agents and learn from them. Do not sign
any agreements with agents limiting your search for bargain property.
(These contracts make you pay the agent a commission even if you
purchase by owner.)
- Use agents who know local market customs and guarantee to make
many offers for you.
- Find a good escrow officer for buying "for sale by owners."
- Study home remodeling, design magazines and books. Learn the
costs of materials, supplies, and trades. Visit home improvement
warehouses. Note costs of building materials.
- Be ready to know a bargain property when you see it.
- Make many offers. Bid on HUD repos.
- Buy only bargain property. Get great terms or concessions from
seller.
- Plan house transformation during escrow. This speeds your work
time -- saving you money in holding expenses.
- Monitor real estate escrow closing. Do not jeopardize your
financing by charging up credit cards or making unnecessary purchases.
- Celebrate buying your "doghouse" with an open house!
Copyright: 2004 Jeanette Fisher
Jeanette Fisher, author, teacher, coach. Design Psychology
makes you more money! Credit questions? Financing questions? Transformation
costs? Free investor advice. E-mail questions to:
mailto:[email protected]
Book: Doghouse to Dollhouse for Dollars
Ezine: Dollhouse to Dollars: Real Estate Investing Made Easy!
Subscribe: mailto:[email protected]
909.678.8780 Orders: 800.246-5161
http://www.doghousetodollhousefordollars.com.
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