Distressed properties are often purchased in “as is” condition. The seller doesn’t offer any kind of warrant. Of course, you know that you should beware of properties like these. Still, distressed properties for sale often have a huge potential for making a profit. So, if you decide to purchase a distressed property, just be aware of some hidden problems.
Keep a close eye out for termites and carpenter ants. Even if they’re long gone, they may have left behind enough damage to be a serious issue. Look for rotten wood, obviously. But also check for thin tubes of mud and small piles of sawdust in strange places. You may also see tiny holes in wood or walls that can indicate a distressed property has issues with bugs or termites.
Also keep an eye out for sneaky water damage. The obvious damage sometimes isn’t even as big of a deal as the hidden damage. Make sure you bounce on the floor near all sinks, tubs and pipes. Do they have give? If so, take a closer look. Check for discolored joists anywhere you can look. Smell and look for any signs of mold. If you find a concerning area, investigate further.
Keep an eye out for possible sewer line damage. Are there streaks of very green grass in the yard? Depressions in the lawn? Talking to neighbors never hurts either. You don’t usually even have to ask about horror stories. Neighbors often love to gab about problems in their neighborhood.
Electrical problems are another thing to consider. Be sure to get the utilities turned on if you haven’t budgeted for new electrical throughout.
Are You Looking for a Hard Money Loan to Flip a House Or Buy A Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.