How do you avoid the BS?

Question

Russell Brazil · Answer

Savy investor = this place is a dump

Buyer responsible for verifying zoning = This is a sfh illegally converted to mfh

Cash cow = money pit that will never make money

This will not last long = this will still be available in 6 months.

Hope that helps you decode the language in this property listing.

J Scott · Answer

Based on the question, it sounds like you're just starting out.  Given that, I would suggest spending a couple weeks reading and learning before you start looking at houses to buy.

That said, the simple answer to your question is, "It doesn't matter what the seller tells you or what the listing says...the property and the numbers must speak for themselves."  If you investigate the property correctly and do your due diligence, you'll have all the information you need to make a purchase decision.  Don't listen to anything the seller tells you.

Bill Gulley · Answer

Well, I only believe a seller when they tell me something negative, then I multiply the matter 10 fold.

Be careful looking at comps saying "in the neighborhood" it could be a block over and be another subdivision and that can make a big difference.

Good translations ! :)

Steve Vaughan · Answer

Thanks for putting these in laymen's terms for us, Russell!  Love it!

David Dachtera · Answer

Indeed. From my earliest exposures to REI back in the mid-80's:

"Buyers are liars, sellers are worse."

Christopher Brainard · Answer

@Zakiya Cupe

Hi there and Welcome to BP.

The advertisement does not tell you anything you need to know about the property - never trust any information you receive from the seller or the listing agent. Always view the property in person. Always do your own due diligence and your own inspections. Always verify the comps you are provided with (or better yet, do your own). Always get written estimates from a reliable contractor (or become familiar enough with it to do your own).

From your post above, it sounds like you are assuming what the house could sell for and what the rehab could possibly be. This is the worst mistake you can possibly make in the flipping business. Get concrete figures before you take the dive on this (or any) property.

-Christopher

Matt Motil · Answer

Two things make me cringe:

1. Savvy investor

2. check zoning requirements.

This is code that it is not an easy project and that what is there currently might not be legal and to purchase it and use it as it's been being used might require you to spend a lot of time and money down at the county zoning and building department getting things changed.

Account Closed · Answer

"BUYER IS RESPONSIBLE FOR VERIFYING ZONING AND ANY COSTS INVOLVED WITH SAID INFORMATION."

If my property had the required zoning for the current use, and my agent put the above statement in the listing I would be on the phone to broker suggesting they dump the agent.

That is code for... "If you call the city or county and mention it is multifamily they will cut off all utilities and red tag it."  Even if they will allow MF in the zoning district, they might require the property to be completely brought up to code.

It might still be worth checking into.  Just not a "GREAT" deal.

Account Closed · Answer

How to avoid the BS?  You already did as you asked BP... kudos!

Bill Florence · Answer

blah blah blah - I do not read the hyperbole I only look at the price, pictures, location, potential value to determine if I spend more then 10 seconds on it.

How do you avoid the BS?

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