Updated over 9 years ago on . Most recent reply
Too good to be true deals
I joined bigger pockets for the purpose of learning so that I can wisely invest down the road. My question for any experienced investor in this community is, "How do you distinguish a good deal from a deal too good to be true? For example, I see many posts on the marketplace advertising turnkey duplexes or triplexes already rented for a ROI of 15-20%. If a property is such a great investment, why would anyone sell it? Again, I'm not experienced in real estate investing, but my red flag radar tends to go up for deals like that. In my life experiences, you get what you put in and "fast/easy money" rarely works out. I would appreciate any advice anyone has on this topic. Thanks!
Most Popular Reply
It takes experience which comes over time.
Eric H. Has some good recommendations on other indicators you can leverage.
As for why someone would sell? A 15-20% APR return is not extra ordinary in the world of REI. I bet the person selling you that is making more, especially when you scale that model out.