Came across an article recently that illuminated exactly why we believe our strategy of having local property managers in various areas around the country saves Platinum Properties Investor Network clients from similar tales of woe. It’s all about micro-targeting location before you EVER pull the trigger on a real estate deal.
Is micro-targeting important? Only if you want to avoid having a great $1,000 positive cash flow deal turn into a $30,000 legal hassle.
Gather ‘round the campfire, kids, and learn why you have to look further into the “great” deal before you buy it. In this example, the buyers were in the early days of their income property career and got starry-eyed over the prospect of a no-money-down deal. Who wouldn’t want terms like that? Talk about leverage! Problem was, in their haste to not miss out on this deal of the year they didn’t check out the local area thoroughly.
What sorts of problems? To start out, the entire block was occupied by an army of drug users and dealers, plus a host of other nefarious characters. No matter how nicely that property was fixed up, think a stable renter is going to want to move their family into that war zone? With crumbling ruins flanking it? Next, our intrepid investors were enmeshed in court with fire code violations and a property manager up for manslaughter. Gulp.
Bet they wish they had been getting their real estate recommendations from Platinum Properties! That’s why we have local managers with feet on the ground and an intimate knowledge of the neighborhood.
Flickr / Wolfrage