All Forum Posts by: Austin Sine
Austin Sine has started 4 posts and replied 85 times.
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Originally posted by @Cynthia Lucas:
Financials aside, if my husband & I vehemently disagree and one has to muscle the other along, it ends up being a bad financial decision in the end. We both work in real estate professionally, so the mindsets are harmonious. It took us years (and a few mishaps) to realize that going into a deal with a fractured "partnership" is a recipe for a lot of problems.
@cynthia lucas Great insight for partners! Thanks for sharing
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Originally posted by @Jennifer S.:
Desperation is usually a deal breaker along with all of the above.
@jennifer siercho Agreed. There's always a reason behind closed doors. Although, if you can properly read the situation desperation could play in your favor.
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Originally posted by @Steven Lowe:
Originally posted by @Austin Sine:
While doing back of the napkin due diligence what is a standout factor that will immediately turn you away from analyzing the deal any further?
Exorbitant property taxes
@steven lowe Definitely a red flag. Thanks for sharing!
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Originally posted by @Brian Lucier:
I have a few off the top of my head
- Non-conforming zoned properties, way too hard to get around these (sometimes)
- High crime rates, D class neighborhoods - beware of bad neighbors too
- Long list of building inspector code violations being transferred at closing
- Too many liens on the property (mechanics, tax, credit - you find these in the title search)
- Clouds on title (relatives in other states that have different plans for the property)
- Too much "spaghetti" on the table (hair on the deal, I am Italian and like food references)
Happy to share my "Due Diligence Checklist" from our BiggerPockets Blog. Enjoy!!
@brian Lucier
Thanks! Do you typically dive into historical documents before UW the deal?
Ill give the blog a read, thanks for sharing
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Originally posted by @Brian Ploszay:
Pricing.
@brian ploszay How often is it worth it to UW a deal so obviously overpriced? I would imagine that it's likely very easy to find obvious errors in accounting for items above NOI.
Spin off question: How often do you find an owner is willing to negotiate if they are inflating NOI.?
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Originally posted by @Storm S.:
@Austin Sine when you google street view the property and there is no property there anymore.
@Storm S. probably not a good sign.
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Originally posted by @John Teachout:
Originally posted by @Austin Sine:
Originally posted by @John Teachout:
Not seeing a path to profitability.
Biggest issue is neighborhood. Second is property condition. We can and will fix anything that's wrong with a property but aren't interested in one that has "everything" wrong with it. I have passed on properties that were almost free just because there wasn't any upside.
@john teachout Thanks for sharing!
Outside of quick aesthetic fixes (i.e. paint) are there any specific fixes that make your eyes widen?
Not really, we've seen about everything there is to see. Bad/inept repairs are worse than no repairs. Probably the biggest deal killers are roofs that have been leaking for a long time causing damage to roof structure, ceilings, floors and supporting structure. And another thing we try to avoid are crawl spaces that don't have room to crawl. Some houses in this area are just built on a couple of stacked rocks and the floor joists are literally on or nearly on the dirt. No access without excavation to do any needed repairs under the house. Some sellers think they have a property with value but in reality it's a scrape. (property that needs to be bulldozed)
@John Teachout Makes sense, thanks again!
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Originally posted by @Dylan Vargas:
@Austin Sine Welcome! Foundation issues. Always VERY tough to find a qualified person at a reasonable price to fix these issues. Way too much money to spend for the unknown.
@Dylan Vargas Thanks! Foundations and Roofs.
Post: What is the deal factor that immediately turns you off of a deal?
- Real Estate Broker
- Kansas City
- Posts 86
- Votes 43
Originally posted by @Lien Vuong:
@Austin Sine totally depends on the agent and that's really why you should have a buyer's agent who will reveal all the deficiencies of the property for you and all of its fault so you have a second set of eyes.
@lien vuong Agreed! Thanks for the feedback