Are you planning on adding new rental properties to your portfolio in 2020? If so, you’ve come to the right place!
Even though you may be excited about adding new properties to your Real Estate Investment Portfolio this year, the reality is that there are a variety of “red flags” that you should be aware of before moving forward with a real estate investment deal.
Red Flag #1 – Bad Communication in The Deal
During the process of investing in real estate, one of the most important things that you should know is that communication is essential, especially communication with the real estate agent, lender, and seller.
Each individual party has its own communication style and, it’s entirely possible that one person may not communicate on the same level as the other.
If you find that you are unable to communicate adequately with either the seller, their real estate agent or the lender, it’s important to take a step back and evaluate the deal because poor communication with any of the parties involved could jeopardize the deal and make it a property that you may not want to close on.
Red Flag #2 – Dishonest Seller
Another thing to look out for during the process of purchasing a new investment property in the Central Valley is someone who can be classified as a “dishonest seller”.
Dishonest sellers are easy to spot because, they typically try to hide problems with the property like cracks in the foundation, problems with the roof, plumbing, or electrical problems, rather than being upfront with the buyer regarding what’s really happening with the property.
If you come across a dishonest seller, it’s important to take a step back from the deal to re-evaluate again and ask yourself if it’s worth moving forward with purchasing the property knowing that there might be other things wrong with it that you’re not currently aware of.
Red Flag #3 – Mold in The Property
Mold in any property is a huge problem because regardless of the mold is isolated to one small room in the home it could be the sign that the property has a larger problem with mold than what you’re able to currently see.
Let’s say that you suspect that a property that you are potentially interested in buying may have a problem with mold, in this case, it’s best to consider a mold remediation company to inspect the mold problem and provide you with an estimate of what it could possibly cost to have that mold removed.
Once you have a price for what it will cost to have the mole removed, it’s best to keep that price in mind when determining if the property would be a worthwhile investment or not.
Contact RPM Central Valley
To learn more about red flags that you should be on the lookout for when purchasing a new rental property, or to speak with us about our Property Management Services, contact us today by calling 209-572-2222 or click here to connect with us online.