Having a detailed understanding of the local real estate market is key to a project’s success. For example, permitting times and requirements can be very different between markets and the requirements can change regularly, and issues with permits can delay projects quite significantly if not handled well. Also, how schools are districted and rated can vary widely, and knowing whether or not a home is in a desirable school district can impact the eventual sale price of the home. Researching the real estate market and local laws related to construction and zoning thoroughly ahead of time can help mitigate these types of problems.
Due diligence is very important when purchasing a distressed property. Make sure the title of the property you purchase is clear and free from liens and encumbrances. If not, gauge the risk involved with buying a property without clear title and know how to work on eliminating judgments, liens, and code violations. Work with the most experienced title company in your area as they will help you navigate the process.