WHAT ARE SOME RED FLAGS ON LISTINGS THAT USUALLY ONLY A REAL ESTATE AGENT CAN SPOT? #18
Bill Fairman (00:04):
Hi, thanks for joining us again. Bill Fairman here with Carolina Capital Management. Do not forget to like and share. We have other videos that are available to you either again on top to the side to the bottom. It depends on the platform that you are watching this on. Here is another frequently asked question that we get frequently, surprisingly enough. What are some of the red flags on a listing that usually only real estate agents can spot? Well, okay, there is issues. One of them is does not allow for FHA financing, or they want cash only. Now, it could be that they want cash only because they just do not want a long drawn out period where they are going to take the house off the market. You know, and it is depending on financing and find out you cannot get financing. But sometimes it means that you could have issues like, there is a clouded title of some sort. You say, you are still working out title issues.
Bill Fairman (01:08): It could be that the property is on a dirt road. You cannot get FHA financing if it is not a, you know, improved state maintained road. You could have a shared well or septic tank. And that becomes an issue too. Who is going to fix it? If it breaks, who is responsible for that? You could have a shared driveway or private road. Again, these things are a concern if, you know, they need to be maintained and who is going to maintain them, who is going to pay to maintain them. Mobile homes, for example, you can get financing through FHA on a double wide on land. It is considered real property, but a lot of times they are in rural areas where you are going to have shared water, shared septic, you know, shared wells. You have easements through other people’s property to get to them. The other thing you need to look out for, too, is a little plot of land that the family had carved out for a, you know, a child and now they have sold the place.
Bill Fairman (02:21):
Now you are going to be surrounded by this other person’s family and especially if it was had been some sort of a bank foreclosure, you are probably not going to be pleasant to live around the family that had given land to their child and then the bank foreclosed. You are probably not going to have some nice neighbors around you, so you do not want to deal with that. As a lender, we do not want to deal with that either because it is going to be hard for us to sell it if the property is surrounded by family members that are not happy that, you know, that there were foreclosing, if that makes sense. Now, all of these can cause mortgage issues and you as a investor want to buy something that is going to be easily saleable because you always want plenty of exit strategies. If you are buying it as a rental portfolio and you do not really care that it has got title issues because you are not planning on selling it anytime soon. Well, you still need that exit strategy because you never know what happens down the road. And you need to prepare for it. And as it is, real estate is not liquid, it is even less liquid if you cannot sell it. So do not, you know, box yourself in dealing with these types of issues. So again, thanks for joining us. Bill Fairman, Carolina Capital Management. Do not forget to share. Do not forget to like us. And again, we have videos that are available in the archive, depending on the platform you are looking, just pick a spot up, down or sideways. Have a great day.