This week I have two (real) short stories for you that are real estate basics everyone can use.
1.) The Importance of Your Final Walk Through
Within seconds of entering unit #2, we walked toward the bedroom and saw part of the ceiling and the AC filter on the floor. There were water stains all over the walls.
Last Friday was closing day for my customer and his 4-plex investment property. Before we entered the unit, things were in order and we were ready to close. We thought we had the real estate basics covered in advance of closing day.
Prior to Friday, I handled his homeowners insurance bids, got quotes for rooftop repairs, worked with his attorney on whether we acquire the existing LLC or set up a new one, and coordinated termite company bids on tenting the building. There were a bunch of real estate basics we addressed in a 3-week period.
But this Closing Day gave us the unexpected. I called the sellers representative and shared the news. They agreed to get vendors on-sight immediately and repair everything to our satisfaction. We signed an addendum to withhold (some) funds from closing until they fixed the ceiling and we verified it. A water line clogged reacting a backup and leak.
Had we not done the Final Walk Through prior to closing, my buyer would’ve been stuck with this mess and taken ownership with this problem on his hands. And he would’ve been responsible for the expenses.
Don’t brush off your closing day visual inspection as you never know what can happen the night before. It’s one of the real estate basics buyers don’t put priority on, but must.
2.) Good Real Estate Basics – Buy And Wait
My ex-business partner from our dotcom tech company has been a renter since 1997. He justified to himself that real estate has been over-valued the last 30 years.
In the meantime, I’ve bought properties in California, Costa Rica, Panama, Arizona and Florida.
I saw him two weeks ago and he confessed how his theory was wrong. He realized that he’s been over-analyzing real estate the last 27+ years and has been on the wrong side of the larger trend.
I told him back then, and now, that like in any business, applying these real estate basics are are not fancy… but they work.
For almost three decades I told him how population trends were growing, how demand would grow, how supply would be strained… and how rents would only go up.
Through it all, he has remained a renter justifying his decision for 25+ years. But with real estate prices still high, he’s not changing his position and will continue renting.
Wealthy investors buy real estate and wait. It’s what most experts say you should do, too. It’s perhaps the best investment words of wisdom for long term thinkers.
And if you’re just starting out, don’t complicate these real estate basics. Start buying when you can, then apply these simple ideas that’ll ensure your success.
(Main Photo: Looking south from Atlantic Ave Bridge never gets old)
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*** Are you a Delray Beach resident? If so, would you like some free trees? Make sure you read this. I’ll have much more for you about this next week
*** High season starts NOW. At the same time, our local housing supply is the highest in 5 years. If you’re a seller, pricing your property accurately, from the first day it hits the market, has never been more important. Call my cell phone for a consultation – my number is below. I answer when it rings
*** If you missed my South Florida Luxury Real Estate Market Q4 Update last week, it’s now on my blog. Check it out here
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*** South Florida’s Surging Supply Update ***
* This morning’s Inventory is 51,996 *
* Last week supply was 51,313 *
That’s a 683 increase in one week
October Inventory is UP 2,004 units
