Investing in Vacant Houses

Investing in Vacant Houses – Why do investors invest in vacant houses

Every neighborhood has them, vacant houses with overgrown lawns and mailboxes stuff with shopping ads and junk mail. These houses are an eyesore yet the owners can’t be reached for explanations or to have them mow the yard. Sometimes the neighbors will group together and decide to mow the yard and clean it up to maintain their neighborhood and their own property values.

vacant house investingThere are two possibilities in this scenario: the house has been foreclosed or the owner is in a bad situation such as hospitalization or a family crisis. Before you begin to complain or become a bad neighbor, be sure you know the facts and then offer to help, if you can. Sometimes we need to help others when they fall on difficult times. This is how investors feel. Yes, they want to make money but more often than not, investors want to increase the value of an area.

We’ve all seen the area revitalization projects around cities in the country. These buildings or blocks may be vacant and need attention but no one has enough money or resources to do anything about it. That is where investors can come in and change the face of a city. These bad areas can turn into thriving buildings, businesses, and become the homes of parks. It is not uncommon to see a group of investors working together to make the city a more beautiful place. What a great legacy they can leave by their business sense and ability to get things done!

The same thing can be said of neighborhoods. If that one house is left alone and the weeds grow, the bugs and rodents will come, and the house can even be inhabited by squatters. This will not only bring down the property value of the surrounding areas but will usually increase the crimes. It is not an ideal situation and should be avoided. An investor has the ability to come into the situation, buy the house for a low price, fix it up, and resell it. By doing this, they are able to keep the area from going downhill quickly. It doesn’t take long for an entire neighborhood to become run down and what used to be a nice area will be a sketchy area of town.

Too many people think that investors are only out for the money. This is true of some but not all or even the majority. Investors are visionaries. They can look at a property and see what it can be, not only what it is right now. They can see past the problems in order to fix them. They want to fix the problems and make things better. The investor does need to make a profit off the vacant houses and that is beneficial to the community as well.

Think about a vacant house in your area that is now or has been remodeled. Did you see work trucks, service companies, and other workers at the house on a daily basis? Of course you did. These investors employ the local community of contractors and workers and in a way are helping to increase the money flowing through that local economy. Those workers will have to eat lunch, buy gas, buy supplies, and may even spend the night at a hotel in that area, which leads to money being brought into the community. If the workers are all local, they are then able to go home at night and pay their own bills. This feeds the local economy and provides a source of revenue for the community rather than just having a vacant house causing problems.

Investors like to work with vacant houses just like artists like to work with a blank slate or musicians need certain atmospheres in which to create. The investors can work quickly with a vacant house. The process to buy the house is easier with no one in the house and the house can be rehabbed in a faster manner when it is vacant.

Investors are problem solvers and want to help an area be reshaped, if necessary. Not only will the investment make them money when it is sold but every area that increase in value will give the investor a chance to make more money when more houses are available. If the investor lives in the area, as many do, they want to see high property values, improved schools, safe streets, and community centers where people can thrive. They live in the area as well and want to be sure it retains its value. If every neighborhood in the city and state begin to decline, the investor won’t have an ability to make a living and will not be able to employ those within the city. Think about the money that will then be poured back into the city from an investor remodeling a vacant house.

When a vacant house is remodeled and a new homeowner moves in, they begin to contribute to the local community. Things like the HOA, schools, community sport teams, local businesses, local service companies, and even state facilities have increased funding from this new person moving into the home. What a great way to help a community by turning a vacant home into a home where the person will give back to the area by living, shopping, and working there!

The investor will begin to build a network of qualified buyers who know them and trust their work. They know that particular investor will find them a fair price on a house and will remodel the house to the correct requirements and specifications. This will create continuous growth and success for not only the investor but also the area in which the investor decides to invest.

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