“Divorce creates opportunities,” writes Michelle Odessey today in her Real Estate Investing Blog.
She is talking about the opportunity to buy a house at a bargain price because it is being sold due to a divorce. Sometimes, the parties are selling the house by agreement. Sometimes, when the parties cannot agree, a trustee will sell the house in a public auction on the courthouse steps.
“While you may not feel good about divorce in general” says Odessey, “when you’re able to keep an eye on legal notes that include divorce filings, in many cases you will find something that’s beneficial to you as a real estate investor: motivated sellers.”
“When homeowners file for divorce there is going to be a point in time in the not too distant future when they decide to act quickly and to liquidate their shared assets – and that’s when the real estate investors start to benefit. If the parties looking into a divorce are focused on splitting everything or they simply need to liquidate the property to cover the expenses associated with the divorce, it’s possible for you to jump in.”
This is what I call a “special situation”. If you look hard enough and long enough, you will find special situations. Sometimes these are the best deals around.
(Side Note: This special situation rule also applies to finding a mate. If you think all the best ones are taken, look for a special situation, like someone between marriages.)