Rescue work: An investment opportunity
I’m constantly looking for opportunities for my investor clients and in today’s market the obvious opportunity is in foreclosures and bank owned properties (REOs). But one problem is that the
But when you drill down to look at the actual properties available, a great opportunity presents itself – RESCUE
Let’s define rescue work – a developer/builder takes on a project and begins the project. They run out of money and the bank takes back the property. You have a property sitting and many times the major structural, plumbing, electrical and mechanical work has been done. A savvy investor can come in with his/her team of contractors and get the property finished in a couple of month, minimizing holding costs and optimizing profit.
THE CATCH – you have to keep your fundamentals in mind – get it from the bank at the right price. The work has to be doable within a short timeframe, the permits already in place, your contractor has to prioritize your project over all others, and you have to make sure that the work already done is up to code. Not so bad!
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