{"id":1425,"date":"2019-07-25T11:01:37","date_gmt":"2019-07-25T15:01:37","guid":{"rendered":"https:\/\/www.beingbobblog.com\/?p=1425"},"modified":"2019-11-12T21:29:52","modified_gmt":"2019-11-13T01:29:52","slug":"shocking-truths-about-real-estate","status":"publish","type":"post","link":"https:\/\/beingbobblog.com\/happy-holidays\/shocking-truths-about-real-estate\/","title":{"rendered":"Shocking Truths About Real Estate!"},"content":{"rendered":"
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You\u2019ve probably read about\u00e2\u20ac\u201dor even met\u00e2\u20ac\u201dpeople who claim to have made fortunes large and small trafficking in real estate. \u00e2\u20ac\u0153Flipping\u00e2\u20ac\u009d houses can seemingly make tens of thousands of dollars appear overnight, all while working your own hours.<\/p>\n

If it you think it sounds a little too good, you\u2019re right to be suspicious. Below, some harsh realities about the real estate game that most aspiring investors, homeowners, or potential buyers should learn about sooner rather than later.<\/p>\n

1. IT\u2019S NOT ALWAYS A GOOD LONG-TERM INVESTMENT.<\/h4>\n

Property owners who aren\u2019t looking to make real estate their livelihood can generally commit to homes for personal use because of their perceived long-term value. But maintenance costs\u00e2\u20ac\u201dnew roofs, plumbing, property taxes\u00e2\u20ac\u201dand interest rates can all conspire to negate any appreciation in the home over time.<\/p>\n

2. YOU NEED A BACKUP PLAN. (AND PROBABLY A BACKUP TO THE BACKUP.)<\/h4>\n

Buying an investment property to sell at a profit has a lot of pitfalls, but one of the most dangerous is not having a back-up plan when the market has turned a bad corner. If selling outright isn\u2019t an option, learn about a lease-to-sell arrangement, renting, or selling below cost to another investor.<\/p>\n

3. INSPECTIONS DON\u2019T REVEAL EVERYTHING.<\/h4>\n

Having a property examined by a professional prior to closing is a wise decision, but not all problems present themselves in an obvious way. Inspectors generally don\u2019t remove or cut into walls to inspect interior issues; water problems might not be apparent until the area gets a considerable amount of rain. Once you own the property, you\u2019re on the hook for any expensive repairs that could have been brewing quietly for years.<\/p>\n

4. STRIP MALL LOCATIONS NEED FACELIFTS.<\/h4>\n

If you\u2019ve considered investing in commercial property, strip mall locations can be an attractive option: they\u2019re modestly-sized and can attract a lot of foot traffic, making them appealing to business owners. But those locations typically need to be renovated top to bottom every five to 10 years. Unless you plan on turning it around in short order, realize that a very large bill\u00e2\u20ac\u201dadding to the overall cost of the property\u00e2\u20ac\u201dwill come around before long.<\/p>\n

5. SELLING? THE FIRST OFFER MIGHT BE THE BEST YOU GET.<\/h4>\n

When you first put your home on the market, you might expect to spend months fielding offers. But in some cases, the very first potential buyers will be the ones making you the most attractive offer. Early birds tend to be highly motivated and have already scoped out your neighborhood to determine a fair market value.<\/p>\n

6. EVICTIONS CAN BE BRUTAL.<\/h4>\n

Say you\u2019ve tried to circumvent a lot of hassles by buying a rental property. The tenants cover your mortgage and leave a profit, but one or more come forward and say they can\u2019t make their lease payments on time. While laws vary by county and state, evicting them isn\u2019t a straightforward process. Waiting for a court date can add months to their delinquency; showing up with law enforcement to have the (ex) tenant moved out means cleaning up, repairing damage, and removing any belongings left behind.<\/p>\n

7. YOU CAN\u2019T ALWAYS FIX IT YOURSELF.<\/h4>\n

Property owners might believe they can handle minor repairs themselves, but residences can have issues requiring major plumbing or electrical work. By law, some of these repairs need to be performed by licensed professionals, adding hundreds or thousands of dollars to the cost of maintenance.<\/p>\n

8. FORECLOSURE SALES CAN BE A HUGE BURDEN.<\/h4>\n

Buying a home in foreclosure is often perceived as a significant savings opportunity\u00e2\u20ac\u201dbut these homes are rarely abandoned in immaculate condition. Foreclosed homes can be in violation of codes and might even come with a buyer-beware asterisk to the sale, meaning that buyers would have no recourse if they bought something with major structural damage.<\/p>\n

9. AGENTS ARE DROWNING IN FEES.<\/h4>\n

If you\u2019d prefer to represent buyers and sellers in real estate transactions to collect commissions, keep in mind that a portion of your salary will be eaten up by recurring costs. Accessing online listings carries premium charges; so does getting a license. Joining associations means paying dues.<\/p>\n

10. IT COULD TAKE YEARS TO MOVE A PROPERTY.<\/h4>\n

For commercial buildings, sellers can often find that buyers have very particular size and layout needs. A property might be too big, too small, or with the wrong kind of parking available.\u00c2\u00a0 That\u2019s why investing in commercial listings require a lot of patience: it could be months to years before both parties find a perfect match in one another.<\/p>\n

11. MOST INVESTORS DON\u2019T MAKE IT PAST A YEAR.<\/h4>\n

So much can go wrong with real estate that investors who decide to make it a career usually don\u2019t make it past the 12-month mark. Like any business, it requires long hours, patience, and an ability to roll with unexpected crises. If you\u2019re still standing in your second year on the job, you might just make it.<\/p>\n<\/div>\n

\"Bookmark<\/span><\/a><\/strong><\/span><\/h6>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

  You\u2019ve probably read about\u00e2\u20ac\u201dor even met\u00e2\u20ac\u201dpeople who claim to<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[1186,1187,1422,1221,1242,1530,1278,1358,1359,1382],"class_list":["post-1425","post","type-post","status-publish","format-standard","hentry","category-all-posts-comments","tag-buyers","tag-buying","tag-costs","tag-estate","tag-home","tag-learn","tag-market","tag-sellers","tag-selling","tag-time"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","chromenews-featured":"","chromenews-large":"","chromenews-medium":""},"author_info":{"display_name":"Being BOB","author_link":"https:\/\/beingbobblog.com\/happy-holidays\/author\/admin\/"},"category_info":"All Posts & Comments<\/a>","tag_info":"All Posts & Comments","comment_count":"0","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p822aG-mZ","_links":{"self":[{"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/posts\/1425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/comments?post=1425"}],"version-history":[{"count":0,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/posts\/1425\/revisions"}],"wp:attachment":[{"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/media?parent=1425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/categories?post=1425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beingbobblog.com\/happy-holidays\/wp-json\/wp\/v2\/tags?post=1425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}