Finding the best real estate leads for rehabbing homes.
Many real estate investors are looking for properties that can be renovated for a profit. Finding the right property at the right price in a condition that can be easily updated can be a real challenge. However, if you can find the right property, money can be made in renovating properties and reselling them.
ATTOM Data Solutions reports that the house-flipping rate peaked at a nine-year high in the first quarter of this year, with 7.2 percent of all home sales — up from the previous quarter’s 5.9 percent. Unfortunately, ATTOM’s report also showed that the average return on investment was 38.7 percent (calculated by the cost of acquisition versus the cost of sale) in Q1. This is the lowest it has been in the past eight years and is down almost one percent from a year ago.
However, while the ROI may be down, there are investors who are making a good profit through house flipping. Finding the right property can be a challenge if you have a limited amount of leads. However, there are ways to find excellent real estate leads for rehabbing homes if you know where to look.
Finding the Right Property
Many investors who are just getting started in property renovation believe that they will have plenty of homes from which to choose. That is simply not the case. Real estate investors are seeing that leads in many areas are simply drying up. Is there an answer?
For investors who want to purchase homes to rehab, there are options that can save money and create opportunity. Knowing where to look for these leads is critical to investors who are serious about building their businesses. There are virtually untapped areas of the market that can help you to find properties for your investment business. Probate, bankruptcy, and divorce cases can provide you with amazing opportunities to purchase homes for a discounted price.
Probate properties are usually put on the market as a requirement by the court to ensure that bills associated with a loved one’s death are rectified. Guided by a court-appointed Executor, this individual, usually a family member, friend, attorney, or accountant, has the power to sell property. Generally, the Executor is willing to sell property less than the current market value. This is because medical bills, legal fees, funeral costs, and taxes need to be paid in order for the probate to be closed and heirs to receive their share of the estate. Executors may also be exceptionally willing to sell property if they live out of state or far away from the property they are managing.
Bankruptcy leads can be found as the result of court proceedings in which an individual is facing financial challenges. These sales can include everything from residential homes to businesses and commercial property. If you find a bankruptcy deal that will work for your business, make sure to have your attorney review the documents the first time you complete this type of transaction. The verbiage required by the courts can be a little bit different from traditional sales.
Divorce leads are another area where you can get great deals on homes to rehab. In fact, many times the court will order a home to be sold to complete the divorce, making both parties more than eager to sell the home at a competitive price. Be forewarned, though, that relationship issues may cause one party to refuse to sign to complete the deal. Have your attorney review the sale documents and ensure that you can remove yourself from the contract if there is a delay due to a disagreement between the divorcing parties.
Where Can You Get Probate, Divorce and Bankruptcy Leads?
Knowing that these leads are available is one thing. Knowing where to find them is another. We recommend using a professional lead service that will save you time and frustration in having to go to the courthouse, sift through leads, and try to find the ones that will work for your business. There are several reputable services that do the hard work for you, so that you can focus on contacting the owner of the house and working on good deals