What's up friend?
Kris Krohn here.
Today, we're going to talk about abandoned properties.
Frankly, they can be some of the best investments out there if you do it right.
So, I'm going to talk about where to find them and then when you do, what you actually
do with them so you can actually buy it when there's no contract signed.
Why would you actually want to buy abandoned property at the first place?
You know, I wanted the same thing until it became one of my next deals.
There was this property very close to train tracks.
It has a small little 3 bedroom, 1 bathroom home.
But frankly, a total dump.
People haven't put love and care in that property in a long time.
And when I saw it, it was actually listed as a short sale.
Which means that the bank actually hadn't totally finished foreclosure process.
They wanted to get it off their books.
And they listed.
And all of a sudden, there were hundreds of offers on these property because it was a
really good...
It wasn't the best vocation but it was a really great price.
And I knew enough about short sales to put my offer at the right time.
9 months earlier, they listed it, we waited until literally the day before the bank was
going to do the review, found out what was all the other offers and we put in the best
offer.
On this abandoned piece of property that ended up actually being bank-owned in this situation,
I ended up securing the bid, buying the property.
Got a fantastic price.
It took a lot of money to fix it up.
I probably put close to 20 thousand dollars on this particular property.
Got it fully fixed up and I help this home for a number of years.
Had a really great tenants.
Always had an easy time leasing it out.
Made great cash flow on it.
And by the time I sold it, I made not a little bit of money.
Like it worked out really well.
So, learned that abandoned properties can absolutely be a great source of investments.
So, why you would want to buy an abandoned property is that ultimately, it means that
the person no longer cares about the property.
Either the property is like border up when you drive around and you find them.
Or the grass has been grown really tall so they're not really doing any active landscaping
on it.
Or you can just look at it.
Looks like hasn't had a decent paint job in a really long period of time.
Might have broken windows.
Any of those things can mean, alright this is a property that's someone owns whether
it's a bank or human and they obviously don't care about it because it's in horrible condition
which means that it's a little bit of crab shoot.
Maybe they're keeping that home because they inherited it and their grandma used to live
there and they made a deal to never sell it.
But often than not, they're just to busy focusing on other things.
This things become an eyesore.
And if you can find a way to get in touch with them, it could be the source if an amazing
deal.
Now, good deals do not always turn out the right way.
Small cautionary tale for you here.
I'd bought a home in Oram, it was a 3 bedroom-1 bath.
And it was over a century old.
And I got a fantastic deal on this house.
But I want tot tell you something.
I spend more money fixing that property up than probably almost any other property.
And when I got tenants in it, it was constant complaining of this not working and that not
working.
The whole electrical system was like dated back to literally like probably like 67 years
earlier.
All the copper in it.
There was problems in it.
And parts of it were eroding.
I held that property for 5 painful years.
And when I finally sold it, I think at the end of the day, I made a few thousand bucks.
The amount of time and intention and carrying costs.
That was horrible investment.
It really didn't earn out.
By the way, I learned the rule on the way about buying really old homes.
And when things are really dated that kind of cost some problems that can show up with
them, tremendous.
Abandoned is not always necessarily a good thing.
You still got to have your standards.
Here's the more important thing that I think you need to be thinking about.
When you buy an abandoned property, you're essentially saying, I think I can get a good
deal this way.
And If I can, means that I'm willing to roll up my sleeves and have someone roll up their
sleeves and go to home depot 38 times.
Someone is going to have to fix this up.
Someone is going to have to actually get this up to code and bring it in to good condition.
Abandoned property doesn't always mean that it's dilapidated but it often does.
It means, you're really looking for fixer upper.
Now, there days, I don't do fixer uppers anymore.
I only do lipstick.
Which basically means cosmetic make up on a property.
Maybe paint and carpet and usually not anything else besides that.
So, buying one of these, you're really signing up for a lot of work.
There's a reason why I don't do them anymore.
You could actually click the link below and get a copy of my book.
Here's the first book that I wrote.
I just had it updated.
And it's called The Straight Path To Real Estate Wealth.
And makes argument for the best way of transacting in real estate . It doesn't include abandoned
properties.
But if you want to find one, the best way is to talk to postman and garbageman and other
individuals that are actually out there driving the streets all day long.
They know where the abandoned properties are.
And to pay them 100 bucks for tip or just ask them and maybe they'll tell you.
Or you can just get in your car and drive around.
That's how you find these.
You can look up the address on county records and it's public information who it belongs
to.
And so, you can get an address off in a phone number.
And with a little bit of doctor googling, you can actually find who owns the property
and get contact with.
The bigger question is just because you can fix something up, doesn't mean that you want
to.
In the beginning, the answer was absolutely yes.
Now, having done enough projects, the answer is absolutely heck no.
I'm definitely not going to do that because I've found out that there's an easier way
hence I wrote this book to actually share exactly what that way is.
By the way, this book is free.
You just cover shipping.
I always printing up extra copies that I can get in the mail.
And we have an excess of them right now.
So, if you want to get a copy of this book, this book will save you millions and make
you millions so you don't monkey around of doing the wrong things in real estate.
This is like b A to Z step by step guide of how to make your first million dollars.
Hey, thank you so much for watching today's video.
I hope that it helps answer the question and really share with you why this happen, where
can you ultimately and these properties.
And ultimately how to get to contact information to make it happen.
At the end of the day, I've learn that there are easier ways to do real estate . And for
ever deal you can find that is distressed, I can find really a good deal that is not
which means, a lot less time, a lot less money, a lot less work.
And potentially make a lot more money.
So, that's of interest to you.
Get my book for free.
It's just down in the link below.
And other than that, if you're not, please be a subscriber.
I make these videos each and everyday for your benefit.
And it cover everything in real estate business to help you become the successful financially
as you possibly can.
Thanks for being here, thanks for watching the video.
We'll see you tomorrow.