Thursday, November 6, 2014

A Real Estate Investment Strategy that is NOT for the Faint of Heart!

One method used by savvy investors that allows them to purchase a property at a discounted price and to later resell it is to buy a property with a “questionable” title. Sound risky? It is, but experienced investors understand what type of title problems can be resolved with the least effort thus allowing them to resell a given property for a reasonable profit.

This is one area of investing that is not for amateurs. Possible hindrances to obtaining a clear title include tax liens, disputes over boundaries, additional claims on ownership, liens from contractors or companies that were not paid for their services and more.

As you can see, this type of investing can be quite risky but can also be very rewarding. The secret is in the research. Many “high risk” investors rely on attorneys that specialize in the area of title search and resolution. Knowing what it will take to obtain a cleat tile is critical and must be performed before any money is invested. Once it is understood what will be required to obtain a clear title it is possible to purchase a specific property well below the actual market value and make an excellent profit by reselling it.

Like any type of investment there can be unforeseen circumstances that may take years to resolve but in the end it is well worth the effort. This type of investment strategy can be considered high risk in some cases and there is no guarantee that each and every investment will pay off in the long run. The bottom line is that performing diligent research and utilizing the services of an experienced attorney in such matters is the key to success.

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