As COVID-19 puts a strain on economic resources, you may have heard that now is the time to have cash ready to invest properties. Experienced buyers realize that prospects occur during times of crisis, but when searching any of these assets, the wisest ones know that there are challenges to overcome. In a downturn, there are things to watch out for.
You’ll likely find a property with excellent tenants and in great shape where the money simply ran out. If you consider a major recession situation, however, there may be problems with deferred maintenance. And this is not inherently bad. You can score some great deals on these properties and make a profit. Only realize that you’ll have some big repairs to attend to, because the sellers may have used whatever funds they had to keep things running smooth. Get a property inspection completed and be prepared for more expenses.
Are you familiar with non-performers? These are properties where it’s clear management isn’t great, whether it’s with collecting rent or poor quality tenants, for examples. Through detecting sloppy bookkeeping and weak maintenance activities, you will detect a non-performer. Sellers who need to make ends meet tend to sell these properties. If they’re in a tough spot, you may have a good offer to make.
This update is by hard money loans Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on a Florida hard money loan or Florida hard money lending, please call 954-816-0388 or fill out our application.