Always a Better Idea

Real Estate Broker/Owner with Crossroads Real Estate LLC

Always a Better Idea

Investors like to think out of the box. You can always tell an inexperienced investor. They always think that all they need to do is look and they will find investment properties no one else will see. They expect to be the only person looking for distressed properties they can buy for nothing, throw in a weekend of work, and resell for a fortune. They actually believe they are the only person smart enough to carry out a simple plan as if it were an original idea. Then an investor gives you a call. They actually have funds in the bank for a cash offer. So you take them out to look at properties. Of course they start at the bare bones lowest price. They are convinced that someone is selling a property with no idea what it is really worth. The investor thinks that and they are going to buy a property and resell it next week and make a fortune. Of course they are rather shocked to see the lowest priced properties. They are old and in the worst shape. Many have water damage and mold. Most had their electrical and plumbing stripped out, and everything including the kitchen sink is gone. Holes are punched out in walls to grade a few feet of copper wire. Some basements are flooded and some basement walls are cracked and leaning. The investor envisioned a pristine property and expected to be the only Buyer looking at that property. After one day of showings, the Investor should take notice of the wake up call. Flipping is a tough, competitive business and is not as easy as the guy on TV says it is.

Then the Investor gets a brain storm. Their plan is to collect a series of properties, rent them out, sit back and collect rent every month, and lead the easy life. Since looking at the cheapest properties didn’t work, they think of a Plan B. One of those plan B’s is to look at condos. Condos are less expensive and there is less competition. The problem is, you need to read the condo papers. In most cases the condo association will not allow owners to rent units, rentals are only temporary, or the association allows only a limited number of rentals. And guess what? Someone beat them to those rental units and the association will not allow any more.

There is nothing new under the sun. Investing requires a lot of hard work and research. No one is going to make money in Real Estate when they are convinced all of their ideas are original ideas.


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Dennis Herman Crossroads Real Estate LLC Howards Grove, WI

Phone: 414-426-1784 

Comments (6)

Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

True words for sure. Investing is certainly not for the faint at heart. Lots of hard work.

Mar 20, 2023 10:18 AM
Dennis Herman
Crossroads Real Estate LLC - Howards Grove, WI
Dennis Herman

A lot easier when working with experienced investors who do the math and take a look from the outside before making an appointment to see the inside. Also helps when the listing agent takes pics of the inside good and bad. 

Mar 21, 2023 07:30 AM
Paddy Deighan MBA JD PhD - Vail, CO
Paddy Deighan J.D. Ph.D

Very true summary … I am going through this now with an investor from Europe - all he sees is the pig of hold and none of the obstacles 

Mar 22, 2023 04:36 AM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

We've all worked with the "newbie" investor and your blog describes this so perfectly.  i have a few of these investors, and time will tell, but the school of hard knocks sometimes puts their perspective in order!

Mar 22, 2023 02:56 PM
Charles Ross - eXp Realty LLC
eXp Realty LLC Salina Group - Salina, KS
Love To Help People

Excellent Information. Thank you for sharing. Have a wonderful day and a blessed week.


Mar 23, 2023 01:39 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Very true!  Investors can be a boost to a neighborhood when a home is flipped, but we all know that they don't do the real work that's needed, ie new sewer lines, electrical, much less repair the issue due to the mold.  Painting over past issues hides the real issue!

Mar 25, 2023 09:41 AM