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Updated about 8 years ago,
Provide guidance or Caveat Emptor?
BP provides a platform for investors to share knowledge and to conduct deals. Many (especially newer) investors often ask for help in evaluating deals. My question is do you ever provide answers to the unasked questions? Specifically, do you comment on posted deals that are not deals because of information that may not be obvious to the buyer? Should we do so or is due diligence entirely up to the Buyer? Here's a couple of examples..
1) The ARV and/or provided comps are significantly incorrect.
2) The property has a stigma that is publicly known, but isn't advertised. (I recently saw a house posted in a neighborhood that had 5 murders in the last 6 months. The Buyer had no idea how tough the area was).
3) The property has non-conforming features that a buyer may not be aware of. An example would be one or more "bedrooms" in a basement that could not be legally classified as bedrooms at resale.
Everyone has different goals, rehab costs, standards for livability,etc. So, I see no reason to get involved at that level. But, are we obligated to help others properly evaluate risk or are we obligated to not interfere?