Proper Education

Some of you know that I am a real estate investor and Realtor.  Even seasoned real estate investors can get into the wrong deal and lose money, which is why education….the proper education is needed as well as mentorship and experience is so important before doing your first deal.

Would you fly a commercial jet after spending a 3-day weekend learning how to fly one? No.  It would be foolish and dangerous.  The same goes for real estate investing.  You are not an experienced investor after a 3-day course. Nor are you an experienced investor if you attend all the REIA meetings for a year.  Get the proper education, coaching and experience before making your first purchase.  You could lose a lot of money.

So, why am I saying this?  I received a phone call from one of my business partners regarding a relatively new real estate investor or “Newbie”, who had bravely pulled the trigger and got a house under contract to wholesale to a rehab investor (Kudos to her for taking action which is what most people don’t do).  However, the word is she and her partner are scared because her inspection period ended, escrow is now calling for deposits and they don’t have any money nor investors that have made any bids for the property.  The property went under contract just a few days ago, to which I asked “why are inspections so short”?  My business partner asked if she had any contingencies on the property, to which she replied, “I don’t know, what are contingencies?”.

It can be very exciting to get your first house under contract, but if you haven’t negotiated a long enough inspection period or don’t know what contingencies are or “Out Clauses”, you should not be making any offers on properties….please.  Also, where the hell is the Realtor who drafted the contract? Is the Realtor representing the buyer or the seller?  That Realtor should be protecting his or her client.

So I’ve instructed my business partner, who wants to help them get out of their situation, to get a copy of their contract so we can see if there are any contingencies written in.  Hopefully, they will take a step back to learn the proper way of investing in property with a  good school.

Ugliest home in San Diego

By the way, I know a good school if you’re interested.

 

~ by Llew Quinol on February 19, 2016.