In my last blog (https://activerain.com/blogsview/5723656/good-news-about-investors), I waxed poetically about the virtues of out-of-state investors who do not have the profit needs of short-term real estate investors (flippers). I espoused his benefits because of his long-term views of an investor.
Since I wrote that blog in early March of this year, my attitude has changed towards this particular investor. In that month, this investor indicated to me that he was ready to buy three additional houses. Not only did he tell me that he could handle three deals at a time after I cautioned him of the complexities of multiple transactions at the same time, but he assured me that they would go through without a hitch.
After we had the home inspections for these three properties (two priced less that $80,000, and one about $125,000), he was appalled that they would need many repairs. I told him that he would be able to recoup the repair costs because he charged a larger amount in rent that he would have to play for his mortgage.
He thought differently, and he since ghosted me after he told me that he wanted out of all three contracts because they would be too expensive to get ready for the rental market. It took quite a bit of effort on my part, and took a pound of flesh as well, but I was able to get him out of all three without paying a penalty.
From now on, I will have a much more clear-eyed view of out-of-town investors.
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