We’ve all ran into the person who was taken advantage of in a bad real estate deal, but why does it seem to happen so often? Maybe, some real estate investors are just shady to begin with. Or, they just tell us what we want to hear, and the deal is too good to be true.
Unfortunately, real estate investing is one of those things in life that can go downhill pretty quickly. There are unscrupulous people out there who scam people out of their money. And, at the same time, there are real estate deals that can go south from other outside forces, like market conditions, changes in lending guidelines, lawsuits, zoning or township requirements, or environmental issues.
There are many other factors as well—probably more than I could mention here. But these types of situations can compound the negative real estate deals even more so because the shady investor can hide behind the same reasons.
“Why don’t they do what they say, say what they mean, one thing leads to another…” – The Fixx
Bad Deals Happen
The dishonesty represented in the The Fixx’s lyrics is an all too common thing in real estate. People are always trying to pitch their great deal or real estate investment opportunity; they get the money, and then mysteriously you never hear from them again. Personally, I’ve been in real estate deals that were mismanaged and went bad, and I’ve also been involved in others that went bad from unpredictable outside forces. Regardless of the reason, I’ve seen some very big differences in how they were handled.
A Failure to Communicate
For example, I’ve seen the scenario where there was a total lack of communication. As Les Brown says, …read more