Learn from mistakes - tips and suggestions # 7

How are you friends?
First of all, a good week for everyone
We come across a lot of investors who "stung" or sold them bigger dreams than reality.
So I decided to write this post, I'll start complaining and stories and then I'll explain a list of things to check to avoid these problems.
To start with, I think that the best way to avoid them is to put an independent consultant in the picture and pay him some extra money to keep you from losing a lot of money.
But if you decide to do it alone then these are my recommendations.

Convention Some Stories -
People who thought they had bought a house but eventually turned out to have worked on them.
People who bought a house after a while turned out to be neither renovated nor habitable.
People who bought a house and wanted to get out of the investment found that the price of the house is significantly lower than the price they paid.
People who told them that they would receive a certain rent but actually received low rent or was frequent replacement tenants.
People who came to sell the house after a while and found debts on it. (Taxes, fines, etc.)
People that the entrepreneur one day disappeared and left them with a property treatment at the other end of the world without proper knowledge and no documents consumed.
People who one day the municipality took out their house for sale because no taxes were paid.

And now to the list of things to consider when entering into real estate investment in the US

1. Checking the contract / investment agreement is of course recommended by an attorney, to see a purchase contract in your name from the seller to see that it says the amount you paid. And if not then understand what else you paid for and to whom and that things will be written with the appropriate receipts. (Purchase contract I mean a purchase contract in English from the original seller. Not a contract written by the developer between you and him that in general the purchase is not from him but from some American)

2. Check that you are not buying above market price.
If you do not know how to do it, you can go to Zilo (a site that advertises real estate for sale in the US) and see the prices of homes sold in the area and see that there are homes sold at the price you pay. (Of course houses of the same size and number of rooms) it is even better to pick up a phone for a realtor and ask him.

3. Transfer money only to a title company and make sure that the sale is made through a title company (if not not to buy) the title company checks liens, etc. and transfers the ownership of the property.

4. Take care of Teitel insurance.

5. Do not pay any money for renovation before it is done. Renovation will only be paid after proof of renovation.

6. If the house has been renovated to send an inspector (you alone! Do not ask the company) to have the house inspected. (If the house is not renovated then send it after the renovation is done and ask it to check that everything that needed to be done was done)

7. Keep a record of everything that has been repaired installed at home and check on what is in charge and for how long.

8. Make sure the house is registered on your behalf to ask the company for proofs and check it at Public Record.

9. Take care of a copy of all the paperwork: a purchase contract, a hedge, a deed, a lease.

10. Check who the management company will be and check on it Even if Israeli society is the one who will be responsible for it (and should be).

11. Check with the company what happens on the day you decide to sell, is that something you have to deal with alone if you can sell in the regular market if they sell it to another investor.

12. Make sure there is home insurance.

13. Ensure at all county / city sites that the taxes / water / electricity / gas payments are actually made.

14. I don't want to take a percentage that shows risk, but I should know that too high a rental yield usually comes from the problem of tenant problems, so in the end, many times it doesn't reflect the true return.
Apparently I forgot something but tried to write everything. The majority is unfortunately written from the burns of investors that I work with.
Of course I would be more than happy to comment on the insights and additions of things I had forgotten

Link to the original post in the United States Real Estate Forum on Facebook - Works on a desktop computer (To view the post must be members approved for the forum)

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