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Selling a Distressed Property


A distressed property cannot be sold on the retail market because most buyers can't get financing for it. The typical lender can't or won't loan on it because of its condition. Such properties are usually run down and need significant repairs, or have other problems like environmental or nettlesome legal issues.

The best way to sell one of these is to find a buyer who has the ability to purchase it in the as-is condition and solve the problem. I know several folks who look for distressed properties and will make you a fair offer for yours. Another option is to joint venture with someone to solve the problem and then split the profits when it is sold or work out arrangements to keep it as a long term investment together. You might also exchange it for a property that doesn't have problems or exchange it for some dirt with future development potential. The possibilities are endless. It's just a matter of locating the right folks with the right capabilities, interest, and motivation, and putting the deal together.

 

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