In order to learn how to buy property below market value, there are a few things that you have to understand about real estate. One is to know the difference between physical and financial distress of a property.

Financial Distress

When a property is in financial distress, it means that the homeowner cannot meet the financial obligations, or is having a difficult time doing so. For investors, this is a great time to come and give some assistance to the homeowner, all while adding a new property to your portfolio. The key to knowing how to buy property below market value has a lot to do with positioning your proposals during the right time of financial distress. Some options may include taking over the note and the property, or dealing directly with the banks for other financial options. Either way, during financial distress, it is highly likely that you can get the property below market value.

Physical Distress

Properties in physical distress are often sold at below market values. Many of these homeowners have already experienced financial distress, and have more than likely given up on the maintenance of the home. Learning how to buy property below market value in physical distress is what many investors aim for when their goal is to quick flip a house.  The trick here is knowing which repairs are cosmetic and therefore affordably fixed…and which get to the bones, or structure, of the home — and could end up costing you more than it’s worth.

Smart investors will know the right time to step in and take advantage of both of these situations and obtain a property way below market values.

 For more information on how you can escape the rat race for good and create lasting, generational wealth with real estate, download my FREE ebook, “How to Find Underpriced Properties: Secrets for Creating Wealth with Real Estate in ANY Economy.”  Visit http://StreetWisePropertyInvesting.com/Ebook.