The exhilaration of getting to “yes” in any type of deal in real estate is the ultimate high. Regardless if you’re wholesaling, rehabbing, or keeping to rent, stitching a juicy deal together never gets old.
Then comes the inevitable: you start to get in your groove, money starts flowing in, then, one of your deals goes poltergeist on you (Hang on, there’s more Halloween references to come.)
In the spirit of the holiday, let’s cover the scariest possible things that can, and probably will happen to you at some time or the other if you start to do any sort of volume. The following are all actual horror stories from investors I know. Vets…I expect to read your scary stories in the comment section!
1) The House Burns Down
One of the investors I used to work for was rehabbing a house on the west side of town. He was watching the news when a late-breaking story of a house fire came on. He recognized the area and thought to himself, “Wow, that’s pretty close to one of my rentals.” Upon watching the on-scene broadcast for another moment, he realized, that WAS his rental.
Firetrucks, news coverage, and a house burnt to the studs. Just the sort of PR most investors don’t want.
Luckily, no one was in it and he had adequate insurance coverage, but nonetheless, having one of your properties burn down is a nightmare within itself.
2) Mold Issue
This isn’t the “condensation on the top of the bathroom ceiling” run of the mill mold. This is “Freddie Kruger haunt you long after you think” sort of mold.
Another investor friend of mine here in Arizona had, like many others, had success in rehabs here and decided to take their chances in other parts …read more