| "Opportunities are never lost. The other fellow takes | | | | more and more distressed sellers, now is the time to |
| those you miss." - Anonymous | | | | find properties that need love. You want to find the |
| Often, finding or creating great real estate deals is | | | | ones that just need cosmetic love though - the ones |
| nothing more than figuring out what the problem is | | | | with lots of internal problems will be expensive and |
| and fixing it. Here are five of the most common real | | | | time consuming to fix. Look for properties where the |
| estate problems, and some ideas for solving them: | | | | lawn has been overtaken by 2 foot high weeds, |
| 1. Landlord Burn Out | | | | newspapers are piling up, and the lights are never on. |
| Being a landlord can be stressful and tiring. Picking just | | | | These properties may be close to foreclosure or just |
| one bad tenant can make your life miserable. And, if | | | | have an absentee landlord that thinks there is no |
| you don't have a clear set of goals or an easy to | | | | market to sell. |
| follow strategy, it's often easier to call it quits. | | | | 4. Be a Better Property Manager |
| A frazzled and frustrated landlord is done dealing with | | | | Lower costs and increase revenues on the properties |
| the troubles of their property. All you need to do is | | | | you own. Energy efficient light bulbs, low flush toilets |
| find them, and offer them an easy solution to their | | | | and ensuring windows and doors seal properly are all |
| issues. Most of the time this person will think the only | | | | things you can do to be kind to the environment |
| way out is to sell. But, in today's troubled market | | | | while reducing your property expenses at the same |
| they may lose money on that sale. Their real problem | | | | time. Or, if your tenant pays the bills, it's an additional |
| is dealing with the bad tenants... if it's otherwise a | | | | selling point and can help you retain tenants longer at |
| good property, you could offer to become a partner | | | | the highest rent possible in your market. |
| on the deal. Maybe you get a 20% share of the | | | | To increase revenues, you can charge for parking, |
| property for just taking on the role of property | | | | rent out your garage separately, rent out a storage |
| manager? No money invested on your part, just | | | | locker separately, and charge for laundry services. |
| some time, sweat and trouble to get rid of the | | | | 5. Be a Better Marketer |
| terrible tenants, place some new ones and take the | | | | Nearly everything you do in real estate involves sales |
| odd call. | | | | and marketing. You can make better deals by being a |
| 2. Highest and Best Use | | | | good negotiator. You can find better tenants and get |
| Most investors just look at a property for what it is . | | | | higher rents by understanding marketing. When you |
| . . but you can look at what it COULD be. In cities | | | | find a deal and negotiate it, you will be using your |
| where the vacancy rate is low, the City is often | | | | best selling skills. When you write ads to attract |
| anxious to add more units to the rental pool so | | | | tenants you will be using your best marketing talents. |
| approvals for changes should come easier. Find a | | | | The key to all of this is to focus on the other |
| house with a basement that could easily be turned | | | | person. Figure out what the problem is of the person |
| into a suite. Or, if you're more ambitious, find a house | | | | you are negotiating with, and be the solution. |
| that could be lifted, extended or torn down and | | | | Determine who your ideal tenant would be and write |
| turned into a multi-unit property. This takes work, | | | | an ad that appeals to that type of person. |
| tenacity and an understanding of city planning (and | | | | Of course there are plenty of other ways to make |
| permits), but the payouts can be big, especially if | | | | money with rental properties, but most of these |
| you've got handy friends and family or just a good | | | | problems can be solved pretty easily - you just have |
| relationship with a few contractors. | | | | to know what to look for and present yourself or |
| 3. Find Properties that Need Love | | | | your deal as the solution! |
| With the number of foreclosures on the rise, and | | | | |