Monday, 24 December 2012

Yoram Eliyahu: Investing in Distressed Properties


YoramEliyahu knows that “flipping” properties, or buying them and selling quickly for a profit, used to be very popular form of investment. Today the quick flip is not as easy to pull off, but there are still many opportunities to invest in distressed properties. The spoils go to those who are patient and make careful investments with the long term in mind.

Small-scale investors are finding the home market to be a great place to make a medium to long-term investment. Home prices are still quite low, but they are starting to slowly rise in many areas of the country. Now is a good time to invest in real estateas it is unlikely that home values will go lower. Now could be a great time to consider purchasing a home to use as rental property. You can begin by renting it out now at a price that will cover your expensive such as mortgage, taxes, and possible future repairs. In the long run, as home values and average rental rates increase, you can raise rent and begin to profit or sell the home for a profit.

Commercial real estate brokers are also keeping an eye on distressed properties. The key here is an instinct for what might be the next big thing. Bryant Park in New York City is a great example. Investors purchased buildings in this once rundown and unpopular area, and invested heavily in renovating the rundown buildings. Word spread that great spaces could be rented for less than that of their nearby counterparts, and the popularity of Bryant Park began to grow. Now, about nine years after renovations first began, Yoram Eliyahu and his contemporaries are pleased to see that the area is thriving.

The Value ofIntuition


While an area like Bryant Park may seem like a lucky hit, Yoram Eliyahu says that its transformation can happen anywhere. Looking at the market with an eye to what is nearby already-popular spots can help make your investment a success. Use your intuition to see what the need is in an area, and fill that need. Additionally, your investment can create a positive in the community, such as revitalizing a run-down area.

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