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Showing posts with label top ten. Show all posts
Showing posts with label top ten. Show all posts

Friday, November 11, 2011

Ten Reasons Why Your Real Estate Deal Fails at the Closing Table!

Having bought and sold many properties I can tell you that deals can blow up right at the closing table.

When I decided to buy my first home in Miami, Florida due to my wife's pregnancy the deal blew up in less than 45 minutes into the closing. I was going to sell my 1 bedroom condo on Brickell Avenue and purchase a 3/2 home in Coconut Grove on the same day! What could go wrong?

Mistake!

The Buyer of my apartment came to the closing but could not close the deal due to late arrival of the bank funds. The Tile Company refused to close that afternoon and wanted to do it the next morning.

Well needless to say, I was MAD!

I was going to use the excess monies from that Brickell Avenue deal as a down payment on the Coconut Grove purchase.

The current owner of the Grove House threatened to take my $12K deposit since we couldn’t close on the contracted date.

Thank God I had an attorney draw up the contract. There was a "subject to funding" clause in the contract

Note: Always have a Real Estate Attorney review your contract template. Check our Service Providers List for our preferred real estate attorney in South Florida.

The next day we closed but I couldn't sleep that night.

Soooooo….just because you have a contract doesn't mean you're going to close!

Below is a list I put together with help from Joseph F. Suarez that provides Ten Reasons Why Your Deal Fails at the Closing Table! (Sellers Beware):

  1. You Contract is not Correct – Too many mistakes can occur right here like wrong Platt numbers, improper property description, wrong dates, etc.

  2. No Financial Commitment By the Buyer
    1. No Money in Escrow

  3. Title Problems
    1. More/Different Sellers on Title
    2. Seller Not on Title
    3. Illegal Title Transfer

  4. Buyer has Collections & Judgments
    1. Check out the Buyer

  5. Deteriorating Market – Current Real Estate Market
    1. Deteriorating Market Value
    2. Deteriorating LTV Ratio .
    3. Deteriorating Interest Rates

  6. Open Permits and Liens – Hurricane Andrew caused a lot of problems with Open permits in Southern Dade County. I can’t tell you how many times I have been nailed on this item!

  7. Fraud/Foreclosure/Google – Again, Buyer Beware!

  8. Water & Waste Lien – This problem appears a lot with commercial properties that only have one water meter.

  9. Property Doesn't Qualify for Financing – Tax rolls list it as a 2/1 one but you think you are buying a 3/2 Uh?!

  10. Uninsurable Property – Property in a Flood zone, property not up to current code, etc.

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Written by +Bob Burns.
 
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Sunday, August 21, 2011

Top 10 Real Estate tips and tricks
from Southern Florida

I was a young teen when my father started buying investment real estate in Southern New Jersey (Sea Isle, Avalon and Stone Harbor, Cape May County, New Jersey). He was a man that could do everything himself so being a real estate investor seemed like a good option for me since I knew a little about it. Boy was I WRONG! It is very difficult and frustrating but rewarding. I could give details but that is for another time.

While buying, rehabbing, landlording and selling in Southern Florida, I learned several tips, tricks and lessons that helped me during the investment cycle. These items will help you avoid mistakes, save time and money and make the process a little easier to manage.

To Your Success as an Investor, Rehabber and Landlord:

  1. Make sure you have the mail forwarded to your business address after you purchase a new investment property....Why? Read my previous blog about this one at: Make sure you have the mail forwarded blog...
  2. Check to see if you have any liens or violations caused by your tenant before giving back their security deposit. I got nailed for $500 for a pit bull violation (future blog posting).
  3. Make sure during a title search that your title company checks for Open Permits. More than once this has hampered a pending sale.
  4. Make sure when a potential client places a deposit for a rental property, you make them sign a document that explains the rules of the deposit, refund or non-refund terms, what it represents, disclosures, etc. Several times I received calls from potential clients wanting their deposits back after you, the landlord, already took your property off the market. Protect Yourself.
  5. You make or lose money on an investment property when you gain control of the property at a specified price. Make sure you follow the Maximum Allowable Offer MAO rule! See my MAO blog about this....
  6. When purchasing an investment property, make sure the tax records match the property description on the MLS. If the property is listed as a 3/2 but tax records say a 2/1, there may be a problem with the structure being legal.
  7. By checking the number of water meters and electrical meters will help you tell whether the multiunit structure is a legal structure.
  8. Make sure when you are about to sign any real estate contract for a property: Florida FAR BAR, short sale option contract, purchase contract etc., all parties are there for signature. If the significant other is not present you may have problems later on. By Florida law if the couple is divorced, unless the property has been settled previously (request documentation as proof), both husband and wife are entitled to the property therefore you need both signatures. Your first Question for any deal is "Are You or Have Been married?"
  9. While rehabbing a property, make sure your mailing address is posted somewhere that the mailman can read it. Otherwise, he will not deliver your mail or make sure you have the mail forwarded.(See number 1)
  10. Land Lords have more than one option for collecting rent and utility payments from their tenants. Section 8, Section Eight, Plan 8 or Plan Ocho is a government subsidized program that pays the monthly fees for low income families associated with living in the Land Lord's apartment, condo or single family home. For more information go to: Section 8 - Information for Landlords and Tenants.

Do you have any tips or tricks with the buying, selling, rehabbing or landlording that you would like to share?

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Written by +Bob Burns.
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