What Is Distressed Real Estate?

April 16, 2013 Leave a comment

foreclosureMark Dawejko is a seasoned real estate investor with expertise in distressed real estate investments. In recent years, the trend has shifted from buying houses in rising markets and flipping them for a profit to buying distressed property, improving it and selling or renting for a profit. Anyone interested in investing the money and hard work required for this endeavor should educate themselves about the potential benefits and pitfalls.

Distressed property is any property acquired in foreclosure, or from a bank post foreclosure or from an owner who is over leveraged and struggling to make their payments. Investors are attracted to these properties because they can potentially purchase them at very low prices and fix them up to sell or rent for a profit. In order to be successful, one must consider and evaluate the market that the property is in and have a very good handle on the rehabilitation costs required to make the property marketable. Distressed property is a tricky investment, but an informed approach can make it worthwhile.

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Mark Dawejko: Advantages of REITs

Mark Dawejko is a real estate investor who is well versed in real estate investment trusts (REITs). People have several options to choose from when it comes to investing for retirement. Commercial real estate that generates income from tenants is an attractive vehicle for certain investors. However, there are many headaches associated with direct investment into real estate. As a result, many investors are turning to REITs to access this potentially lucrative industry.

Anyone who decides to buy commercial investment properties must have a significant amount of cash and complex financing for the purchase and patience for issues with tenants and facility maintenance. Furthermore, individual properties can be highly illiquid. Some investors bypass these headaches by purchasing shares in publicly traded REITs. Most REITs today are self managed, which means that your shares represent ownership in a professional management team as well as an interest in the REITs portfolio of properties. A tenant doesn’t pay their rent? The professionals collect. A roof leaks? The professionals get it fixed. Most stocks in REITs are traded on major exchanges and are highly liquid. The best part, though, is that the REIT itself pays no corporate income tax so long as it distributes mandated minimum income to its shareholders. So, investors end up with healthy dividend income. Talk to your investment adviser and see if there is a place for real estate in your portfolio.

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March 29, 2012 Leave a comment

 

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