By David Mendivil Gonzalez
During the real estate bubble of the mid-2000s, real estate investment seemed like an easy way to earn profits. Today, as the world markets continue to recover from the bursting of that bubble, investors are again taking an interest in real estate, though the hot properties now are distressed rather than new.
Investing in distressed properties can be highly profitable because the financial difficulty of a property’s current owners means that investors have the potential to purchase property at a bargain price. In order to maximize the odds of succeeding, investors should keep a few strategies in mind:
— Do the math. Jumping in without crunching the numbers can lead to serious financial difficulties and a lot of unpleasant surprises. Always calculate the real cost of a property before buying.
— Understand the costs and risks. Distressed properties come with many hidden costs: extensive repairs, taxes, inspections, and more.
— Be prepared to invest more than money. Reselling for a profit requires investing funds and work into the property.
About David Mendivil Gonzalez:
In his position as Director of Grupo Desarrollador del Noroeste, S.A. de C.V., David Mendivil Gonzalez has found success in acquiring and reselling distressed real estate properties on the Mexican market.