Oops ~ This Investor Got Stung

By
Real Estate Broker/Owner with Beam & Branch Realty TREC #547752

While recently assisting a buyer for a home, during the inspection, several large ticket items reared their ugly heads. The roof, the HVAC, and several appliances needed some serious remediation. After a discussion with our Inspector, we determined how we would go back to the Seller to negotiate repairs.

The Listing Agent let me know very quickly that the owner/Investor of this home had not owned the home long enough to file a claim on the roof (which clearly is in need of an entirely new roof). Therefore, the Investor was going to lose money. They offered us $1,000 in lieu of repairs.

Well boo-hoo for this Investor whom we discovered purchased the home with same these same items on their report. The owner even asked our roofer if he could just cover up the old roof with new shingles as it would be less expensive!!!!

Heads up Investors, if you want to flip homes in this market, you need to know what you are doing. Do not assume a buyer is so desperate to buy that they are willing to take the hit for your lack of taking care of business. 

The listing agent should have had these discussions early on as not disclosing these things on the Seller Disclosures (knowing full well the issues due to your recent inspection), prior to placing the home on the market.

Thankfully, by standing our ground, the Seller agreed to pay for the items at closing so my client can get them done by their own, reputable contractors. Buyers should not be the ones to get stung by a bad business decision from an Investor.

Buyer beware in this market of flipping! If you are in need of any real estate needs in the North Texas area, contact us at Beam & Branch Realty. We are here to help you navigate this market.

 

Photo Credit to Duncan Sanchez

 

Posted by

Beam & Branch Realty       

"Have you fully lived today?"

   Paula L. McDonald ~ REALTOR®, 

        Granbury, Texas 

 936-203-0279 Direct

Selling Hood County and surrounding areas!

PaulaMac59@gmail.com 

      CNE

Houzz      

 John Maxwell

Farm & Ranch

 


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Copyright 2021 Paula McDonald

Comments (24)

Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Paula- I once consulted with a would-be newbie flipper who didn't realize that putting lipstick on a pig was not the way to do business. He wanted me to put a large area rug to hide major flaws in the recently laid floor. 

Sep 13, 2021 06:41 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Oh my word, Kathy Streib! So dishonest and slimey! We've got to call these guys out.

Sep 13, 2021 06:48 PM
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Paula.

If people would take the dollar signs out of their eyes and pay attention to doing the right thing, issues could be avoided and in the end making them more in the long run.

Sep 14, 2021 12:49 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Paula - the term "lipstick on a pig" came to mind while reading your post.  Unfortunately, it can be found when "pretty" is promised but a savvy  buyer will complete their due diligence to get an accurate view of a property.  

Sep 14, 2021 01:56 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Paula - you really can't cover up those defects.  Some investors don't know what they are doing.

Sep 14, 2021 04:17 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good warning, Paula. I'm always warning my clients to be very careful in their decision-making.

Sep 14, 2021 04:39 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

As with any other segment of business, there are those who do everything correctly and carefully and those who break all the rules in search of money. Good thing the buyer had you on their side to help guide them through a purchase from one of the latter.

Sep 14, 2021 05:27 AM
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I recently viewed a home that had just been flipped.  To say the repair/upgrade had been done cheaply, would be an understatement.  They painted the old cabinets, and kept the old hardware, and you could tell it.  There was new flooring alright, but the cheapest you could find and a mishmash of surfaces that didn't go together well.  Oh, and the price, it was right up there with homes in the vicinity that had been done to the nines.  

Sep 14, 2021 01:29 PM
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

CONGRATULATIONS Paula, on having this blog FEATURED in the Old Farts Club group!  

Sep 14, 2021 01:30 PM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Hi Paula we've been dealing with these kind of flippers for sure in my area.  Some simply don't have a clue as how to manage a project.  Easy to spot from the gitgo.  Usually something seems off.....and it always is.

Sep 15, 2021 12:19 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Yes, James Dray - yes, it's the dollar signs that cause people to make poor decisions. 

Sep 15, 2021 12:25 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Michael Jacobs, I love the "lipstick on a pig" quote. Bandaids don't cut it on investment property.

Sep 15, 2021 12:27 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Grant Schneider - way too many Investors have no clue the responsibility they have in these flip properties.

Sep 15, 2021 12:28 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Nina Hollander, Broker - good buyer agents are the ones who help navigate our buyers to avoid being stung by these types of properties.

Sep 15, 2021 12:29 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Yes, Kat Palmiotti , we must be on our toes to help our clients avoid these money pits.

Sep 15, 2021 12:29 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Myrl Jeffcoat - these properties make my stomach turn. Too many shortcuts and potential issues that will undoubtedly show up down the road.

Sep 15, 2021 12:31 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Anna Banana Kruchten CRS, CRB, Phoenix Broker - big eyes on a pocketbook rather than in doing the right thing will always be unfortunate.

Sep 15, 2021 12:32 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I guess that would be a good deal for the investor if they could find someone willing to buy their 💩 fix and flip. 

Sep 17, 2021 10:12 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

FEATURED IN CRAP-TACULAR

 

 

Mr. Crappy Says

Flush the Crappy Fix and Flip

💩💩

💩

 

 

Sep 17, 2021 10:14 AM
Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Some "investors" think that slapping on a coat of paint is all they need to do.  That's why it's ALWAYS a good idea to get a home inspection.  Great post!

Sep 23, 2021 01:35 PM