I was speaking to a fellow investor friend of mine today and he asked: “What are your show stoppers for rental purchases?”
What he was referring to were those things on a property that will kill the deal when it’s already under agreement. We had an interesting discussion on it, and I found that his list and other investors’ lists of deal killers were very different.
What Keeps Me From Going Through With a Deal?
In today’s video, I talk about my deal killers and review other investors’ items. You’ll have to watch the video to hear them all, but here’s one: I will do a deal with lead-based paint. Some investors run for the hills if they see lead-based paint in a property or hear that the building was built before 1976—the year it was banned in the United States. I have found that I can work around lead-based paint by properly treating it once we purchase the building and notifying our tenants of the risks when they move in. I’ve also found that my insurance company will cover us for claims of lead poisoning, so we are covered there. It comes down to risk tolerance.
Related: 3 Ways to Make a Stellar Real Estate Deal Out of an Average Deal
My “show stoppers” all have to do with things I can’t change. I can remove a bad tenant, I can repair issues with the property condition, and I can work around hazards like lead-based paint. I can’t change other factors of the property, and those are my show stoppers. Watch the video with this article to learn what they are!
If you have some show stoppers of your own, please leave them in the comments section of this article.
Have a great and profitable week!