How To Buy Abandoned Property

How To Buy Abandoned Property

What’s up friend? Kris Krohn here. Today, we’re going to talk about abandoned
properties. Frankly, they can be some of the best investments
out there if you do it right. So, I’m going to talk about where to find
them and then when you do, what you actually do with them so you can actually buy it when
there’s no contract signed. Why would you actually want to buy abandoned
property at the first place? You know, I wanted the same thing until it
became one of my next deals. There was this property very close to train
tracks. It has a small little 3 bedroom, 1 bathroom
home. But frankly, a total dump. People haven’t put love and care in that property
in a long time. And when I saw it, it was actually listed
as a short sale. Which means that the bank actually hadn’t
totally finished foreclosure process. They wanted to get it off their books. And they listed. And all of a sudden, there were hundreds of
offers on these property because it was a really good… It wasn’t the best vocation but it was a really
great price. And I knew enough about short sales to put
my offer at the right time. 9 months earlier, they listed it, we waited
until literally the day before the bank was going to do the review, found out what was
all the other offers and we put in the best offer. On this abandoned piece of property that ended
up actually being bank-owned in this situation, I ended up securing the bid, buying the property. Got a fantastic price. It took a lot of money to fix it up. I probably put close to 20 thousand dollars
on this particular property. Got it fully fixed up and I help this home
for a number of years. Had a really great tenants. Always had an easy time leasing it out. Made great cash flow on it. And by the time I sold it, I made not a little
bit of money. Like it worked out really well. So, learned that abandoned properties can
absolutely be a great source of investments. So, why you would want to buy an abandoned
property is that ultimately, it means that the person no longer cares about the property. Either the property is like border up when
you drive around and you find them. Or the grass has been grown really tall so
they’re not really doing any active landscaping on it. Or you can just look at it. Looks like hasn’t had a decent paint job in
a really long period of time. Might have broken windows. Any of those things can mean, alright this
is a property that’s someone owns whether it’s a bank or human and they obviously don’t
care about it because it’s in horrible condition which means that it’s a little bit of crab
shoot. Maybe they’re keeping that home because they
inherited it and their grandma used to live there and they made a deal to never sell it. But often than not, they’re just to busy focusing
on other things. This things become an eyesore. And if you can find a way to get in touch
with them, it could be the source if an amazing deal. Now, good deals do not always turn out the
right way. Small cautionary tale for you here. I’d bought a home in Oram, it was a 3 bedroom-1
bath. And it was over a century old. And I got a fantastic deal on this house. But I want tot tell you something. I spend more money fixing that property up
than probably almost any other property. And when I got tenants in it, it was constant
complaining of this not working and that not working. The whole electrical system was like dated
back to literally like probably like 67 years earlier. All the copper in it. There was problems in it. And parts of it were eroding. I held that property for 5 painful years. And when I finally sold it, I think at the
end of the day, I made a few thousand bucks. The amount of time and intention and carrying
costs. That was horrible investment. It really didn’t earn out. By the way, I learned the rule on the way
about buying really old homes. And when things are really dated that kind
of cost some problems that can show up with them, tremendous. Abandoned is not always necessarily a good
thing. You still got to have your standards. Here’s the more important thing that I think
you need to be thinking about. When you buy an abandoned property, you’re
essentially saying, I think I can get a good deal this way. And If I can, means that I’m willing to roll
up my sleeves and have someone roll up their sleeves and go to home depot 38 times. Someone is going to have to fix this up. Someone is going to have to actually get this
up to code and bring it in to good condition. Abandoned property doesn’t always mean that
it’s dilapidated but it often does. It means, you’re really looking for fixer
upper. Now, there days, I don’t do fixer uppers anymore. I only do lipstick. Which basically means cosmetic make up on
a property. Maybe paint and carpet and usually not anything
else besides that. So, buying one of these, you’re really signing
up for a lot of work. There’s a reason why I don’t do them anymore. You could actually click the link below and
get a copy of my book. Here’s the first book that I wrote. I just had it updated. And it’s called The Straight Path To Real
Estate Wealth. And makes argument for the best way of transacting
in real estate . It doesn’t include abandoned properties. But if you want to find one, the best way
is to talk to postman and garbageman and other individuals that are actually out there driving
the streets all day long. They know where the abandoned properties are. And to pay them 100 bucks for tip or just
ask them and maybe they’ll tell you. Or you can just get in your car and drive
around. That’s how you find these. You can look up the address on county records
and it’s public information who it belongs to. And so, you can get an address off in a phone
number. And with a little bit of doctor googling,
you can actually find who owns the property and get contact with. The bigger question is just because you can
fix something up, doesn’t mean that you want to. In the beginning, the answer was absolutely
yes. Now, having done enough projects, the answer
is absolutely heck no. I’m definitely not going to do that because
I’ve found out that there’s an easier way hence I wrote this book to actually share
exactly what that way is. By the way, this book is free. You just cover shipping. I always printing up extra copies that I can
get in the mail. And we have an excess of them right now. So, if you want to get a copy of this book,
this book will save you millions and make you millions so you don’t monkey around of
doing the wrong things in real estate. This is like b A to Z step by step guide of
how to make your first million dollars. Hey, thank you so much for watching today’s
video. I hope that it helps answer the question and
really share with you why this happen, where can you ultimately and these properties. And ultimately how to get to contact information
to make it happen. At the end of the day, I’ve learn that there
are easier ways to do real estate . And for ever deal you can find that is distressed,
I can find really a good deal that is not which means, a lot less time, a lot less money,
a lot less work. And potentially make a lot more money. So, that’s of interest to you. Get my book for free. It’s just down in the link below. And other than that, if you’re not, please
be a subscriber. I make these videos each and everyday for
your benefit. And it cover everything in real estate business
to help you become the successful financially as you possibly can. Thanks for being here, thanks for watching
the video. We’ll see you tomorrow.

9 thoughts on “How To Buy Abandoned Property

  1. First

  2. How do you feel about houses that are up for auction

  3. Yay im the 3rd comment

  4. Hey kris, where and how can I learn about the whole procedure for real estate investing from start to finish?

  5. Kris. How can someone find out who owns abandoned property?

  6. Out here in Alaska the market is super uncompetitive. Abandoned house are everywhere but they are so far under the market quality that it doesn’t make sense

  7. Great video Kris! Probates can be one of the best ways to find abandoned properties!

  8. Kris, I need some advice on any classes to as a freshman to start my knowledge on real estate. New video?

  9. Ordered your book a few days ago, Looking forward to reading and prepping myself to play this game right and profitably

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