There are a few real estate investing red flags that an investor should ALWAYS look out for. If you don’t, you could end up in the same situation as David Pere, who just finished off a four-year lawsuit after a seller tried to get rid of a deal that wasn’t even worth the dough. But David wasn’t a rookie when this happened. This was David’s third deal after having multiple units under his belt. And even though he was able to walk away from the lawsuit, the downsides, years of stress, and wasted opportunity is what he wants to make sure you DON’T repeat.
This deal didn’t look fishy at the start, but as soon as closing came, difficulties started to crawl out of every nook and cranny of this property. Made-up leases? David’s got them! Weirdly intertwined relationships between sellers and property managers? It’s there too! Repairs that never got made? You bet! And this isn’t even the worst of the deal gone wrong. The story gets even more unbelievable, fraudulent, and downright confusing as David spills the tea.
But this isn’t a pity party. All while this lawsuit was happening, David has been scaling his rental property portfolio, reaching financial freedom, and still doing the best he could to build wealth. This story is NOT meant to scare you off from investing but to show you that any deal, no matter how bad it gets, can be a learning lesson that allows you to reach your goals even faster!
In This Episode We Cover:
The “more doors” trap and why scaling bigger isn’t always the best move
Lease options explained and why a seller would risk signing one
Mixed use real estate and the multiple streams of income that come from one property
Why you should ALWAYS get your team into a deal before you sign the contract
Red flags David missed that you should ALWAYS look out for when buying a new property
Taking a seller to court and what to do if you find out there’s fraud in your deal
Why savvy buyers (and sellers) always document EVERYTHING said in a negotiation
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
BiggerPockets Youtube Channel
BiggerPockets Forums
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BiggerPockets Podcast
BiggerPockets Merch
BPCON2023
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Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
David's BiggerPockets Profile
David's Instagram
David’s YouTube Channel
Work with David
Rob’s BiggerPockets Profile
Rob’s YouTube
Rob’s Instagram
Rob’s TikTok
Rob’s Twitter
Case Notes
The 6 Best Ways to Minimize Your Chances of a Lawsuit
3 Strategies for Using a Lease Option to Invest in Real Estate Creatively
Investing in Mixed Use Commercial Property
Book Mentioned in the Show
The No B.S. Guide to Military Life by David Pere (For FREE!)
Connect with David Pere:
David' BiggerPockets Profile
David's Instagram
David's Website
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-734
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