Distressed Property

Discussion in 'The Buying & Selling Process' started by mojorising, 18th Jan, 2019.

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  1. mojorising

    mojorising Well-Known Member

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    Gold Coast, QLD
    What are good ways to find distressed properties?

    There should be property bargains pop up now and again especially with the property market looking a bit wobbly.

    I found a few sites with google like trovit and forcedsale but they are not showing up anything interesting.

    I did very occasionally find respossesions on realestate.com.au but they are like needles in a haystack there.

    There was a special phrase that the REA used for the listing. I googled it since it suonded odd and it seems that it is RE terminology for a forced sale. BUt now I cannot remeber what the phrase was. It was basically meaning sold-as-seen.

    I have sold my house so I have a bit of cash. I am happy to move anywhere in Australia if I can find the killer bargain...

    But where is it...?
     
  2. radioactive

    radioactive Well-Known Member

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    The other day a BA called me saying that he specializes in off-market or distressed property and can buy up to 40 % of market value.I told him that market yield in 6% so the yield for your properties should be 10% and he became shaky.. I believe a lof this buying is just hype.
     
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  3. mojorising

    mojorising Well-Known Member

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    Thanks radioactive. I have never heard distressed property being referred to as 'off market'.

    What does that mean?

    Surely distressed property is generally 'on the market' and looking for a quick sale - because it is distressed.
     
  4. Noobieboy

    Noobieboy Well-Known Member

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    No one. No matter how distressed would sell their property at 40% discount unless it needs 25%-35% investment to bring it to a liveable condition. Overall, I think the best you could aim is 10-15% below market.

    No advice
     
  5. Sackie

    Sackie Well-Known Member

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    Perth.

    Would be like shooting fish in a barrel I reckon, though the barrel is slowly getting bigger. The good thing about getting a ppor in Perth is its not only 'cheap' but great value, according to what I hear
     
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It depends on what you mean by distressed.

    Generally distressed is where an owner is behind on mortgage repayments and is motivated to sell before the bank takes possession and sells it. It is quite a long process before banks step in and sell a person's asset and only then if they have exhausted all avenues to get the owner to keep paying the mortgage.

    But a REA doesn't have to disclose what is motivating a seller to sell, they often don't even need to disclose if a sale is a mortgagee in possession sale (bank foreclosure) in the listing.

    You can search on keywords but they are only clues if they are there at all in a listing:
    mortgagee in possession
    foreclosure
    motivated seller
    property sold as is
    mortgagee exercising power of sale


    The other way which there are a number of courses on is the "ambulance chasing" techniques of trawling through court documents finding ones where banks are chasing payments and approach the owners directly. It's still needle in a haystack work.