Knowing How to Find Real Estate Issues
Knowing how to find real estate issues is a major focus point for new and seasoned real estate professionals. There are many issues to look for, some visible and some not so visible. Let’s discuss some of the things to look for.
Buyer Beware
The buyer must be aware when it comes to real estate. What this means is that you must do your due diligence. Find out everything you can about the property. You want to make sure that the property is insured for fire damage. If it is in a flood plain, make sure it has flood insurance. To clarify, the last thing you want to do as a new investor is purchase a property and lose it a short time after closing due to a catastrophe.
Have a property inspection completed by a top notch inspector. There are many property inspectors out there, if you don’t know one ask someone you know who recently purchased a home who they used. Like many professions there are great ones and not so great ones. The many point is that a property inspector can often find issues that you may not know of or cannot see.
Understand Stupid Things Can Happen
Many illegal and stupid things are done every day in real estate. Often times, these things are not done on purpose. Sometimes people do things that they don’t know that they’re not supposed to do. There are a lot of people out there who just want to take advantage of other people. People and investors need to be aware of that. Importantly people and investors need to be aware of the things done out of ignorance.
The first thing you want to do to avoid the illegal and stupid things that people do, hire an attorney or CPA. Make sure you know what the laws. Just because something is in a lease, does not make it legal. State laws always trump lease agreements.
Selecting Your Team
One of the most often overlooked aspect of real estate for new investors, is selecting your team. You will want to build a team just like any other professional organization. Your team should include the following:
- Realtor
- Mortgage Broker
- Appraiser
- General Contractor
- Sub Contractor
- Insurance Agent
- Attorney
- CPA
- Title Company
- House Hunters
- Wholesalers
- Buyers List
There are two magic questions to ask when building your team. Those two questions are:
- Are you an investor?
- Do you work with other investors?
Some questions that you can ask yourself are the following:
- Who is already apart of my real estate team?
- What positions/skill sets do I still need on my team?
If you don’t have specific people in mind for those empty positions, make a plan to find your people.
Conclusion – How to Find Real Estate Issue
In this article, we covered some brief topics in how to find real estate issues. If you would like to learn this topic in greater detail, we invite you to join our nationwide team of real estate investors. Visit timefreedomrei.com to learn more.
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