Property investment professionals are often asked to turn bad stock and other distressed property into assets, or even profitable ones.
That’s what John McKinsey, a property consultant and founder of PropertyInvest, has been doing for many years.
“For a lot of the properties I have dealt with, the problem was they were undervalued,” he said.
“We are a firm that does research on the properties and look at the fundamentals of what they are worth, what they can sell for, what their selling prices are and what they have the ability to make out.”
Then we work out how much to buy them for.
And if we have a reasonable amount of profit from selling them, we sell them for what is probably a lower price than what they were worth when they were distressed.
“What’s the deal with distressed property?
Trinity Property Consultants’ property specialist John McKinnon has been helping people make a profit from distressed properties, and the latest is a new product called Trinity Property Investment.
The idea is that when you buy distressed properties for the first time, you can sell them at a profit.”
You have to take a look at what you are buying,” he explained.”
What are the problems?
What is the market value?
Is there a reasonable chance of selling it for more than what it was worth when it was distressed?””
And then you have to consider the upside potential of selling for the same price, for the lowest possible price, to get into the property market.
But if you can put together a profit, he said, it would be worth it. “
If you are selling for $30,000 to $40,000, and you are going to buy the property at the same time, that’s the worst case scenario.”
But if you can put together a profit, he said, it would be worth it.
“That’s when the good stuff comes in.”
What you need to know about distressed propertiesIn some instances, distressed property can be worth more than its market value.
“The problem is that a lot people think that is just the property sitting there and there isn’t anything going on,” he continued.
“There’s a lot going on with the owner of the property.
They’re living in an illiquid market.
They have debts and they’re in arrears on their mortgage.”
In other cases, McKinnon’s advice could mean more than just a profit on the sale.
“In some cases, it’s a way to make money from your debt, because you’re in a better position than they are,” he added.
“Sometimes you’ll get the sale price that you could have paid, but there’s a bigger upside.
So, it might be a way of making money, but in some cases it’s actually a way that you can help yourself.”
If you have a problem with distressed propertiesYou can find a property specialist that specializes in distressed property at www.trinityproperty.com, and if you need help with buying or selling distressed property, contact them.
The Property Investor website: www.propertyinvest.com.au/propertyinvest/property-invest/displaced-property-service-trinity-providers-advice-trends-investor-investing-investment-professional-recovery-consultant-john-mckinnon