Since I started my marketing, I have been getting alot of phone calls. On more than one call, I have been told that another investor was going to buy it or had a buyer lined and the deal fell apart for several reasons. Meanwhile these people were strung along for months and some were told not to pay the mtg since closing was just a week away, etc, etc.
Now not paying the mtg seems like a common sense error and they should have known better.
I know we want to be creative and find buyers and make things happen but leading people on like this is wrong and eventually the govt is going to step in and stop or regulate REI.
So lets just be honest with people and treat them fairly.
you try dealing with a seller who promises to get you mortgage information, but it takes them 3 weeks, tells you there’s nothing wrong with the house, but the inspection shows that it has rotted flooring from the persistent unrepaired water leaks, the service panel is undersized for the circuits they’re running and the foundation needs to be leveled. then you find that it appraises for $15,000 less than they promised and that they only have $3,000 in equity when they told you they had $30k.
It would be one thing if investors were tying up properties just to mess with the seller. That ofcourse is not the case. When investors get the property under contract, that’s when the sellers lies come to light that mcwagner described and that’s what makes deals fall through. Perhaps the investor can get the financing together, that happens everyday to retail home buyers.
If the government decides to regulate investors, they should regulate homeowners as well. We could just decide to regulate everything. Hell, let’s just become communist!
That wouldn’t do us any good since uncle sam would own everything and we couldn’t sell houses to each other. Plus they would tell us what our jobs are, we coudn’t pick REI. I hate our gov’t.
i have had people tell me the investor had a buyer lined up for months, never saw a ssales contract, and never met the buyer. The investor promised them if the buyer didnt buy it, the investor would. well obviously the investor backed out. meanwhile these people didnt seek out other options since they thought it was covered and now the home is being sold in 2 weeks at auction.
yeah, the sellers have some blame for relying on one person, but if they were so prepared, they wouldnt be in foreclosure.
I have heard the same story from several people so its not one incident.
as far as listening to what the seller tells you on appraisal and repairs, I cant believe you would believe the seller. I check the property and estimate repairs, and pull comps before I even look at it. From the tax records I see whats probably owed and from my comps I have an IDEA of the propertys worth. I do that before even looking at it and if its not a good deal, i dont go.
And I am not saying it is always the investor. But I have read alot of posts on here from investors who are trying to tie up property under contract, THEN try to find a buyer.
But I have read alot of posts on here from investors who are trying to tie up property under contract, THEN try to find a buyer.
That’s not an issue of ethics, it’s a lack of intelligence. It’s in the investors best interest to assign the contract or buy the property on every good deal. The reason those dumb investors kept delaying the seller is because they were unprepared and struggling to find a real investor.
No experienced investor trusts the seller about the property. While it’s important to do some preliminary research prior to looking at a property, it would be unwise to spend too much time or any money on a property that you haven’t tied up.
you ESTIMATE repairs, but you’re not an electrician.
you know what’s PROBABLY owed, but you’re not the bank
you have an IDEA what the property’s worth, but you’re not an appraiser.
so I can see how you never run into any of these problems.
Plus they would tell us what our jobs are, we coudn’t pick REI. 