Learning from a Walkaway Experience 🧐

[Jorge Abreu]

Let me tell you a story about a property tour that taught me some important lessons. I was a newcomer to the real estate industry and was still establishing my footing. 👀

We stumbled on a property being sold directly by the owner, and guess what? We actually agreed on a price before we even stepped through the door! Normally, I would emphasize the significance of seeing a property before making any decisions, but this particular circumstance appeared promising... at first.

You see, we had both vacant and down units ready for our visit. It seemed like a property tour combined with some due diligence. But when we began to ask questions and explore the site, something seemed odd. The seller's responses were suspicious, and we became concerned. But the real surprise came when I noticed a damaged door on the side of the property, far away from where they were driving us. My curiosity got the best of me, so I started to look into it. And, guess what? The entire first floor had been gutted due to water damage, and they were doing everything they could to keep it covered! Can you believe it?

That situation caused me to lose trust in the seller. What else could they be hiding if they were concealing something so important? It was a huge red flag, so we immediately changed our offer.

Trust is essential in real estate, and if you don't trust the seller, walk away.

This anecdote taught me significant lessons. First, it emphasized the significance of complete due diligence. Rushing into a deal without thorough investigation might have severe effects. Second, it emphasized the importance of asking the correct questions and paying attention to subtle indications during property visits. Sometimes what you witness, rather than what the seller tells you, shows the reality.

If there is one thing I've learnt, it's that you should never rush through a property tour. Take your time, take photos and videos of everything, and use the chance to connect with the seller or broker. And do not stop there! Again, talk to the locals—cops, hotel personnel, and restaurant employees—to obtain the inside scoop about the neighborhood.

Real estate investing necessitates rigorous attention to detail, which is why property tours are essential for acquiring critical information. Don't settle for shallow observations; instead, delve further, ask meaningful questions, and follow your intuition. Building relationships and rapport during property tours can also result in unforeseen rewards, such as sellers leaving equity in the transaction because of the trust and connection formed.

Remember, every property tour is an opportunity to collect information that is not available on paper. Be a detective, be interested, and never underestimate the value of diligent due diligence. It's better to walk away from a purchase that doesn't meet your criteria than to cope with hidden problems later.🙌

[Michael McKinney]

@Jorge Abreu I myself do not invest in large multi-family properties as of now. But obviously there are some similarities between what you're talking about here in doing your due diligence with an apartment complex and doing your due diligence on a SFH as well. When it's been a while since I've gotten a good deal, I find myself trying to look at any deal that comes across my desk with rose colored glasses instead of being as critical of them as I should. All that to say, I completely agree, and it was good to get this reminder for when I am looking at more properties to add to my portfolio!

[Jorge Abreu]

@Michael McKinney Absolutely! Feel free to reach out if you have any questions or if there's anything I can do to help you achieve your goals.