We almost sold a property to buyer who said, literally, "We we're told in a class that if the numbers work and it looks okay, to just buy it." The buyer lived in another state. I didn't get the chance, but I was going to advise them to get their money back for the class.
Honestly, there are some instances when you don't need to see a property in order to buy it. For example, if, to the best of your ability, you can justify the income/expense information and it was prepared by a respected, professional management firm, then you’re off to a good start. If you've seen additional pictures and an inspection comes back with no major concerns, then sure, you'll most likely be okay to buy sight unseen. However, take a risk with a property that has some maintenance issues in a questionable sub-market, and you'll most likely come out on the other side not looking so good.
Sounds simple, doesn't it? You'd be surprised.
One of the first questions we ask out-of-state buyers is: "When does your flight get in?" If they respond with something like "Well, I'm not sure I'll be making it to town," their ranking on our Quality Buyer Barometer automatically drops a couple points.
It's not simply about seeing the property. It's also about making a serious commitment to owning property. As agents (and as sellers), the level of seriousness a potential buyer demonstrates matters tremendously. Sellers don't like to deal with people just "playing real estate investor" with their property. If they're serious about selling, they want to work with people serious about buying. Think about that.
One last point: Every out-of-state buyer we've worked with in the last six months that has come here to visit the area and see property, has invested. Those who simply call a lot and don't visit haven't spent a dime on property. What's that tell you?
There comes a time, if you’re serious about investing in real estate, when you just need to pull the trigger. Look folks, few properties are perfect. In fact, no property is perfect. Being a landlord means spending money on property. Eventually, if you make enough mistakes, one day you’ll wake up rich.
footnote: The property in the picture above was sold to an out of town buyer who came here twice. Once to see the area and narrow down some neighborhoods and the second time to close on this quadraplex.
4 comments:
what a garbage company- they only want to rip you off selling trash properties for far more than they are worth-
outside investors beware- if you are a raleigh insider you will know better.
Ouch. Quite a slam, and from quite the professional I'm sure. Nevertheless ...
We've been doing this for over 26 years. If you want references, names, transaction history, etc., give us a call or stop by the office. Or, do your own research. You can't be the top agent in a small market for that long by ripping off people.
But a person is entitled to their opinion. Even if it's stated anonymously.
I don't know if I would call them a trash company, but the prices are defiantly a rip off. I am a downtown Raleigh investor and the above post is right on, you should know better if your from around here.
Well John, and Anon... our job is to determine what a person will pay for a property, not what it's worth to everyone in the market. That's where people get confused. A property is worth different things to different people. And again, the market sets the price. If no one responds, we lower it. If we see a lot of attention, we keep it where it is. And lastly on price, you know that we only suggest a price to the seller, right? We can't force them to list their property at a specific number.
And relative to this, "locals know better" thing... What locals? We work directly with the largest apartment and single-family rental property owners (and have been for 20+ years) in the Triangle. Stop by the Wake County Apt. Assoc. or TREIA meetings each month and introduce yourself. After all, that's where "the locals" are.
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