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By Emilio DiSpirito, Realtor and Team Leader of DiSpirito Team with HomeSmart Professionals www.DiSpiritoTeam.com
This is PART ONE of a two-part series… Some will agree, investment properties are like boats! Your best two days are the closings when buying and selling!
Some will agree, investment properties are like boats! Your best two days are the closings when buying and selling!
Outside of pricing a property wrong, here are three additional mistakes that we see happen often when property owners are getting ready to sell their investment properties!
It’s our hope that you will learn from their mistakes and correct them before listing your property for sale to avoid very costly concessions that will leave you with 5% to 20% less in your pocket after the sale! (That is a lot of cash!!!)
Misleading tenants. Think about what happens when someone lies to you.. you get defensive, don’t trust them and become armed. It’s a natural thing for humans, so why do so many landlords take the exact opposite approach in the following situations?
a. Telling tenants that the Realtor conducting a fair market analysis is a city inspector, insurance inspector, etc. Tenants will see this agent often when the property lists!! Immediately they will feel betrayed and retaliate!
b. How Should you deal with the sale?
c. Imagine yourself as a tenant and imagine being approached with both situations. Which one would you take to best? Remember the Golden Rule! Due onto others as you would want others to do unto you!
Lack of Paperwork Preparation! Picture going to purchase a property, being on a showing, asking the agent questions about leases, mechanicals, property history, etc. and getting zero information! How comfortable and or confident will you be that this is a sound investment? Would you ever invest hundreds of thousands blindly?! If the answer is no, why would anyone else?! Here are the following areas unprepared sellers get kicked in the teeth! Check yourself!
Not meeting basic lending requirements! Many buyers are leveraging the first-time buyer programs, FHA and or VA financing for multifamily owner-occupied rental homes! These are government insured loans. In addition, even buyers with conventional financing want to ensure that there are no health and safety items that could be a potential litigation issue and liability for them when they fill it with tenants. Basically, first time buyers, FHA and VA, all require certain health and safety concerns which do not allow for chipping paint on interior, exterior, buildings on lot, electrical, heating and sewage issues in addition to missing handrails, etc. In the event any of these items are identified during the appraisal, the financing will be flagged, and the item(s) will need to be corrected and reinspected before moving forward or the buyer may walk away and collect their deposit back.
It’s always best when dealing with the complications involved with real estate to have a trusted team of advisors from the right real estate agent to attorneys, home inspectors, contractors, etc. to refer to when times get tough!!
Did I talk you out of selling? Ha-ha! It’s ok, jump in, the water is warm, just bring your life vest!!
If you would have asked me what I wanted to be growing up, little Emilio would have told you “an archeologist” or “an architect” despite the fact that at age 8 I had my first lemonade stand, landscaping business and was recording my first “news show” on my boombox! Well, I never was much good at trigonometry and did could not see myself traveling for months and possibly years at a time, so becoming an architect or archaeologist clearly did not happen!
Fast forward 26 years later and I’m running a team of the finest residential real estate professionals, own a media company and host my very own radio news show about real estate!
In September of 2017, I married my best friend, Jaclynn, and we have two wonderful children, Destinee and Emilio, V. We have 3 dogs, one of which is a rescue and live in lovely Rhode Island. Jaclynn owns a high-end hair salon in addition to an on-location hair and makeup business!
For 7 years straight it seemed that I had put in more hours than the day had to give on my real estate business. 7 days a week, 14 to 16 hour days, without a break! Why? My friends and family did not understand the sheer magnitude of moving parts and services we offer to our clients during a transaction! One slip up or one missed call could mean make or break for someone’s dream home or even a lost deposit!
Running a team of like-minded, highly qualified and capable professionals has allowed me to offer a very streamlined, simplified and efficient approach to the sales process for our clients and allowed me to earn personal time again with my family while not missing a beat for my clients!
When I’m not working, I’m with my family, riding my mountain bike, eating at a number of local restaurants, enjoying live entertainment, hiking, skiing or reading!