In this YouTube video, seasoned broker, investor, and mentor Joe Homs (40+ years experience) explains why investors should consistently target distressed properties. He outlines three core benefits: (1) low, affordable purchase prices that allow value‑adding rehab to create equity; (2) strong financial returns, typically 8‑12% profit margins on flips; and (3) rapid resale potential once the property is renovated, especially appealing to millennial buyers seeking move‑in ready homes. Homs then details two primary sourcing strategies: partnering with knowledgeable, investor‑savvy real‑estate agents who can provide deal flow and mentorship, and a do‑it‑yourself approach involving wholesaling, pulling absentee‑owner or probate lists, and leveraging texting, calling, and social‑media tools. He emphasizes that calculated risk‑taking and decisive action separate successful investors from failures, and invites viewers to watch a follow‑up video on qualifying leads and to reach out for further help.
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Hi, in today's video, I'm going to talk about 3 reasons to buy distressed properties in today's market. Coming right up. Are you looking to save money? Do you need a property and don't mind doing some repairs? So look no further. Distressed properties might be just what you need. Before we begin, I just want to say welcome to the channel. My name is Joe Homs. I've been a broker, investor, and mentor for over 40 years. This channel is dedicated to the new and experienced investor, those who want to create the life they've always wanted through real estate. Let's talk about the 3 reasons to always buy distressed properties. The biggest one, number one, low and affordable prices. So you're getting a property that is less than what the market value is. You're putting some rehab into that property and you're making it worth more at the end of the day. That's just the simple formula. Keep watching. I'm going to show you how to find these distressed properties. Which brings me to number 2, financial gain. So in each of these properties that I flip, there has to be a profit motive in there. I usually use at least 10%. I vary from 8% to 12%. Right now I'm hitting it out of the ballpark. It is a very crazy market right now. Number 3, oftentimes a very quick sale. When I'm done with my rehab, it goes from an ugly duckling to a beautiful swan, and it is very easy to sell as people come in Especially millennials, they're looking at it, it's completely staged, it's completely remodeled. There's nothing to do for them but literally just move in. So it makes it for a very, very easy sale. Do you like these type of videos? Let me know what you want me to cover next. Comment down below. Let's talk about how to find these properties. One way is contacting a knowledgeable real estate agent and hopefully an investor themselves. You can get a lot of information from a knowledgeable real estate agent that is also investing in fixers, in rehabs, and things like that. They're the go-to person. They have the deals and can bring you in to work on those deals or even mentor you along the way. Number 2, You can always do it yourself. Become a wholesaler, start texting people, start pulling lists, absentee owners, whatever list you're looking for and whatever it is that you're looking to do. You can do probates. There's lots of lists out there. Again, texting, calling, emailing, using all those kind of social media, new type of tools and go out and do it yourself. Now that you have all the facts, you're in a better position to own distressed properties in the near future. Often the difference between a successful real estate investor and failure is one's ability to take calculated risk and act. If you're new to finding your own distressed properties and want some tips on how to talk directly to the seller, Click on this video right here. I break down everything that you need to know to qualify every lead so that you can make your next deal successful. As always, feel free to reach out 'cause I'm here to help you.
