By Lori Greymont
There’s a house on Vine Street in Atlanta. The homeowners defaulted and the bank foreclosed. Then the property was listed at 80% of its value by an agent specializing in REOs. The three-bedroom, one-bath house in a decent working class neighborhood didn’t sell. So the agent dropped the price. And dropped it again. Why wouldn’t the house sell? It was in good, not great, condition. The house didn’t sell because no one in the neighborhood could get a loan. Finally, the asset manager had to get the distressed property off the books. He slashed the asking price to $10,000 and listed it with other similarly priced houses, and then sent the bargain list to investors.
Distressed assets can be huge money makers for savvy investors—as long as they follow the five principles for converting empty properties into cash-producers. (more…)
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