All Forum Posts by: Guy Gimenez

1. Check the entire MLS print-out. Many will have a disclaimer stating that the information cannot be relied upon and buyers must confirm all information via their own due diligence.

2. Purchase contract should show the entire legal as platted. If the contract shows the correct legal description but also shows seller is conveying 2.11 acres, and that has not been amended, I think you have a reasonable argument. If you're using the builder's contract form, rest assured it will be very one-sided in the builder's favor.

3. With the potential for a small financial loss on your end, litigation would certainly not be worth the hassle and expense. If you have the legal right to terminate, it would be a better option. If you're not sure about your contractual rights and obligations, seek legal counsel. 

You're smart for recognizing the importance of building relationships...very few wholesalers in my area understand this. I don't buy from assignors for two main reasons...liability and fictitious numbers. 

Most assignors in my area of Texas have virtually no concept of the real costs associated with an investment, including acquisition, hold, remodel and sale costs. That's because they've never purchased, renovated, or sold a property. I get calls weekly from assignors across the country who are surprised that I don't have any interest in their retail deals. 

To gain investor confidence, ensure the investment property numbers are real, use the most common contract forms in your state (versus a 2 or 3-page) internet/guru contract form) with appropriate addenda, or an attorney-drafted form and attorney-drafted assignment agreement. Also provide tons of good / detailed photos along with property details critical for the investor to make a decision. 

@Jared Lyon

The devil is always in the details. What is said on the phone or in their marketing matters not. What is in the four corners of your contract means everything. Get a copy of the agreement and review every word of it. If you're not a "contract" guy, have an attorney review it. Due diligence is critical. Promises are easy to make but hard to keep. 

You need to think about not just the potential income but also the potential problems such as city ordinances, state law, insurance, potential eviction issues, etc. I think this is one of the riskiest strategies. It can be good when everything is clicking, but it can also be horribly bad...and dangerous when you end up with a problem occupant. Imagine someone harassing your girlfriend, damaging your property, using or selling illicit drugs, dog biting you or your other tenants and creating a flea or noise issue, or any number of other potential issues. It would be a huge mistake to jump into a strategy without understanding how to deal with problems that may very well arise, more especially when the property is in tenant-friendly states. 

The chances of you getting $11K in value from a course is likely quite slim.

1.  Spend at least 2 hours per day researching online about your desired investment strategies. Save related articles to the cloud for reference. 

2. Attend every local REI MeetUp you can. Business is about relationships; with the right relationships, you'll have much of what you need to get out of the starting gate. There is simply no substitute for creating relational capital.

3.  Use the $11K for marketing instead of for a course which, at best, will be generic and will lead to the next course upsell. 

My investor friends who joined an investing franchise were severely disappointed. It was nothing like they were told it would be. Do yourself a favor. Start building relationships with retirees who want a better return on their money. Provide them proof of your ability to find, fix, flip (or whatever strategy you plan to use), and then start with small amounts of their money. As they see their money is safe and you're succeeding with your plans, they'll usually ask to increase the amount of money they loan to you. This happened with almost every one of my PML's. 

It would be considered a 2 bedroom with a "flex space" which means you have one extra bedroom to rent. I'm having to make some assumptions because there is missing info in your post, but it sounds like the flex space doesn't have a separate door to the exterior. If so, the flex space is only useable for you since you don't want a stranger entering your master bedroom in order to access the flex space. If that's the case, the flex space adds no value from an income standpoint, unless you spend a little money to put in an exterior door and window. 

$995 Broker Transaction Fee? Your broker just gave you a reason not to trust them. 

Follow UHaul data. There's a reason folks are fleeing the west and northeast states for more fertile ground in Texas. The high taxes are problematic but Texas is far more landlord and business-friendly than CA, NY and most other states. I stay in the submarkets and rents do just fine.

In 2023, Texas was UHaul's top destination (3 years in a row) for one-way trips. 

While you may not have a problem with it, future buyers may. As previously stated, each state has different and specific adverse possession statutes and you should investigate this further as it certainly could hinder a sale in the future, and you may find that future buyers are not as reasonable as you. And the fact the new owner of the neighboring property also failed to do due diligence should not factor into your decision to keep, if still allowed by your state laws, what you presumably paid for.