What? Todd, you were being given a home and you didn’t take it? Yep, you read that correctly! I was given the same test as my mentor and coach and I failed! You see, an investor down in Florida was giving away a condo, I thought “GREAT! A perfect investment property”
That is when my friend, coach and mentor pointed out some very hard math that I didn’t consider. The first was I couldn’t sell it if I took it, because the banks wouldn’t lend on it because it hasn’t been finished and 80% of the building has been foreclosed on.
The second was the rent in the building. If I could find a renter it would have been only about $1400 a month, but the taxes, insurance and the HOA dues would have come to close to $1800 a month. My free property, even if I had a renter, would have been costing me $400 a month. (How is this a good deal?)
So, I learned a valuable lesson about investing in areas that I don’t know very well. Ask questions! Because if a deal sounds too good to be true, it probably is… Free isn’t always as great as it sounds!
If you are thinking of buying an investment property anywhere in the United States, make sure you run it through my property analyzer before you put any money down or pay for any inspections.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
©2009 Todd Clark - I was almost given a home in Florida, thank goodness I didn’t take it!
