Investors

REO properties and distress properties are not new to the marketplace but they are now front and center and represent a large number of the available properties being sold. These properties are appealing not only to purchasers intending to occupy them but to investors from all over the world. A key factor to consider in the case of these properties is that distress properties often have physical deficiencies; these are usually easily visible or can be easily detected with an onsite inspection but more important are the other problems often attributed to these properties which are not always easily identifiable.

In general these properties are not well maintained or have been vandalized and often there are lot mowing violations, assorted code enforcement violations or worse. Since the properties are usually sold as is and all problems, visible or not, get passed along to the purchaser it is prudent to conduct research in advance of committing to such a purchase, particularly in the case of properties purchased at courthouse auctions.

Often many of these deals seem too good to be true, which could be the case. Since investing in distress properties can be fraught with risk, careful research on the part of an investor, including a lien search, research for code violations and open building permits can help to minimize or prevent exposure.