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Don’t Invest in Weird Properties Just Because the Deal Excites You
Here’s a lesson I learned the hard way. Don’t ever buy weird properties that prevent a fast sale or a fast occupancy. Now, here’s my story, one mistake I honestly made and even sharing this makes me gag on a piece of humble pie.
The first property that I bought using the subject to method where I buy the property and the house is transferred to me, but the loan stays in the seller’s name. I was extremely excited to do this deal. It was my first subject to deal. And the house was odd in regards to it’s lay out and in hindsight, I probably should not have bought this property. It’s was one headache after another.
But the main thing was the property was weird, but I didn’t see it at the time because I was so excited and ready to close the deal that I just completely overlooked some of the things that were weird about the property.
Don’t ask me how I did this because one of the main things that I overlooked about the property was in one of the bedrooms, there was a spiral staircase going down through the hardwood floor into the unfinished basement, which more or less could not be finished. There were too many obstacles – the ceiling’s were too low and (to mimic a very funny Seinfeld episode), yadda, yadda, yadda.
So, there was a spiral staircase going through the floor. It wasn’t poorly constructed, but nevertheless it pretty much removed one whole bedroom from the home and I had more problems getting people to want this home because more or less, it’s a two-bedroom home.
And people are getting very, very picky nowadays. They want more bedrooms, more bathrooms, more room, and you can’t blame them. But I was so excited to get this house under contract for subject to and I just wanted to close it and I was ready to go. And I just completely overlooked the fact that this house was just plain weird.
So, more or less, that property was a pain in my side. So, the take away from this is stay away from functionally obsolescent homes, homes that are weird, homes that are in busy areas, homes that are small, homes that are next to a railroad track, next to a highway, next to commercial centers, in bad areas, different things like that.
Buying weird properties that have different negative nuances around them similar to these will prevent you from getting the property occupied or getting it resold.
So, you almost have to take a look at it from an outsider’s point of view sometimes. Am I going to be able to fill this property quickly? Am I going to be able to get it sold quickly? Are there any surrounding or any other inside or outside influences or nuances that will prevent me from being able to satisfy my exit strategy with this property?
So, I’ve made that mistake. Hopefully, you will learn from this and not make the same mistake that I did.
One reason I can help you in real estate investing is to share my mistakes so you don’t make them. Yes, I’ve had a few. You will, too. But having someone who can help you avoid the costly ones and get through the minute ones is key. Check it out here:
www.freemakemoneygift.com/Invitation.html
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