Wednesday, August 28, 2013

Distressed properties: Worth the investment?

The remodeling industry is thriving under the current economic conditions. Home remodeling is a popular topic in the media, particularly in magazines and reality television shows. Distressed properties are in abundance, and renovating these homes for a handsome profit has attracted the attention of both amateur investors and specialists.

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Distressed properties—particularly those that have undergone a considerable amount of disrepair through the years—can be a real estate investor’s goldmine. While the actual profit margins from buying and selling remodeled real estate are not as big as those seen in popular media, repairing and renovating a low-priced rundown home can be a very good investment depending on the circumstances. Much of the advantages come from low initial cost of the home and of remodeling the property. The markup prices of newly renovated homes are usually more than the initial price of the home when it was first purchased.

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Homes that are dilapidated are usually sold for much cheaper prices than homes that are in mint condition. The costs of remodeling these homes are typically much lower than the costs of building a new home, assuming that the home has not dilapidated beyond a certain point.

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Done right, a distressed property can be transformed into a nice home ready to be sold at a substantial profile. This article on Forbes.com provides more information on profiting from distressed properties.

Mariyan Khosravizadeh is a sought-after real estate agent in the Los Angeles area. Visit this site for more information about her work.