There are many courses out there teaching people how to invest in properties with zero money down, own multiple properties with minimum cash outlay and all.
In recent years, many of my friends and agents have come across social media ads promising the above and are concerned that they are "left out" of such crucial knowledge.
Fire sale properties are sometimes also known as undervalued properties, below valuation or urgent sales.
Yes, in theory you can learn about all these things. But the fact is in the past few years, most of these "good deals" were concentrated in the industrial property space and it has been tough finding great deals in the residential market.
But in light of the current market, it is opportune now to visit this topic about how you too can find fire sale residential properties with built-in profits.
Let me share with you these mechanics over a series of posts that I've planned.
So How Exactly Do You Find And Invest In Fire-Sale Properties With Built-In Profits?
The short answer if you're time starved.
1. Find an urgent seller. (Whether through a private treaty sale or an auction)
2. Buy the property at a significantly lower price than its valuation.
Easier said than done you say?
Indeed. It is not easy to find a property (Especially Pre-COVID-19 or during smooth sailing years) whose owner would agree to sell at a significant loss.
After all, with so much demand from locals and foreigners, a slight discount over the valuation is usually enough to get it off the shelf.
But wait.. do you know that even in good times, there are always genuine fire sale deals around? There will always be people who are caught on hard times or have other pressing reasons to let go urgently.
Out of the many I have seen - Some were migrating, some were retrenched, affected by business losses or lost badly on their investments in the stock market by leveraging way beyond their limits.
Some on the other hand, urgently sell to arbitrage and take advantage of greater yields and upside in the stock market (Like now!)
Okay Stuart, cut to the chase... There are good deals out there but how do i find them?
First, let me qualify that it is not a walk in the park.
Finding gems require alot of hard work. So if you're not prepared to do the work, it's alright, at the end of this article, sign up for my mailing list and if you're lucky, I'll be sending out the occasional REALLY GREAT deal I find which you can then be a part of.