St Louis MO distressed properties are as prevalent as American pie but I can probably say that for most (if not all) cities in the U.S.
After the financial collapse of 2008, there were many properties that were physically distressed.
During that time almost anyone could get a loan for a property even if they didn’t have actual income.
This created a HUGE problem for lenders and left many properties in ruins.
Benefit of St Louis MO Distressed Properties For Investors
There are some benefits for cash investors who add St Louis MO distressed properties to their portfolios.
Remember the old adage, “Buy low and Sell high?”
That is the entire premise behind buying cheap real estate in good areas.
There is nothing wrong with that philosophy at all but can you imagine doing the opposite?
It’s scary to even think about over paying for something to later sell it for less than you originally purchased it.
That’s called a “bad investment” or an incompetent investor in most quarters.
Cons of St Louis MO Distressed Properties And Why
If you happen to purchase a distressed property in a not favorable area or if your analysis is wrong, then you can lose a portion of your investment.
The oldest saying in real estate is, “Location…Location…Location” which implies buying in the right area so that you won’t lose your shirt (sort of speak).
What happens when an investor is paying out more than their rental property is producing?
The answer is “deep trouble” because your liabilities should never be more than your income on a rental property.
It’s called negative cash flow and it can get you in trouble quickly.
Turning Ugly Distressed Properties Into Positive Assets
St Louis MO distressed properties are turned into very good investments by great management from start to finish.
Some investors don’t focus on planning and therefore it ca get their entire project in deep water.
Also having the right team in place can be a huge force into turning ugly properties into positive assets.
What Other Ways Can St Louis MO Distressed Properties Bring Great Value To Cash Investors?