A goal shared by many investors is snagging a great real estate deal. To achieve that, however, there is a significant amount of due diligence required to ensure that the deal is, in fact, a good one. With that in mind, there are simple ways to spot signs that may sway you to think twice.
The length of time on the market. In many cases, a property lingers on the market due to an overinflated price tag. This may be due to reasons such as a seller having unreasonable expectations of what they can get for the property, which means no one is interested.
The numbers aren’t working out. Countless investors have purchased a property even though the numbers suggested otherwise. This often happens because the investor believes they can make the numbers work or they’re eager to land another deal. If the numbers don’t work out for whatever reason, believe them and move on.
No comps are available. Speaking of overpricing, if it’s impossible to find recent comps for the property, beware. Without comps, determining the after repair value will prove tricky and potentially risky. A good rule of thumb is to have at least three comps before proceeding.
This update is by hard money lending Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money lenders Florida or hard money lending Florida, please call 954-816-0388 or fill out our application.