Sorry if this is a rant, but sometimes I can't believe some sellers! I am under contract for a 6 unit that currently rents for $2,575 when market rents should be at $3,100. They have no written leases, they are all oral and the owner still doesn't have a report on who paid rent this month. They haven't paid taxes or water in 3 years and owe the city over $25k (I am under contract for $85k) so I am not sure if they will even walk away with a check at closing.
Bad management and not running this like a business will leave you with no profit and a hard time selling. Good news for people like me is I get to come in and turn it around and make it a very profitable business.
@Brie Schmidt It is startling the number of people we come across who really don't care. With the amount of money that goes into Real Estate it still blows my mind that people have a "let the chips fall where they may" attitude.
I run into this quite a bit.. Most of the time, they brought in bad management and then they lost control, and then became despondent, and now they don't have a clue what to do, and thinking about it keeps them up at night, so they just totally shut down all thoughts of it... Finally they just want to get rid of it, and don't want to give you any documentation that makes them realize how much they have lost on the deal, or will allow you to realize how big a fool they are...
That enough run-on sentences? haha
In December we bought a duplex owned my a California investor. The upper unit had been vacant for 8 months and they were losing too much money so sold it. We closed on Monday, had a lease on Wednesday for $100 more than their PM was "advertising" it for. Now we might be buying another one of their duplexes
My pappy always said.. 90% of businesses fail because of bad management, and/or absentee owners...
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