Wednesday, April 1, 2020

WHAT ARE SOME RED FLAGS ON LISTINGS THAT USUALLY ONLY A REAL ESTATE AGEN...

https://carolinahardmoney.com/what-are-some-red-flags-on-listings-that-usually-only-a-real-estate-agent-can-spot-18-2/

When the listing does not allow FHA financing or want cash only. 

That means there are issues a lender will not allow in a loan.  Watch out for estate sales, dirt roads, clouded titles/quiet titles, community wells, easements, shared septic systems and mobile homes that have add-on structures.  All of these can cause mortgage issues for the person you want to sell it to. 

Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground up Construction Loans" for investors only in NC, SC, GA, VA and TN (some areas of FL, as well). 

As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.





Bill Fairman (00:04):
Hi, thanks for joining us again. Bill Fairman here with Carolina
Capital Management. Do not forget to like and share. We have other videos that
are available to you either again on top to the side to the bottom. It depends
on the platform that you are watching this on. Here is another frequently asked
question that we get frequently, surprisingly enough. What are some of the red
flags on a listing that usually only real estate agents can spot? Well, okay,
there is issues. One of them is does not allow for FHA financing, or they want
cash only. Now, it could be that they want cash only because they just do not
want a long drawn out period where they are going to take the house off the
market. You know, and it is depending on financing and find out you cannot get
financing. But sometimes it means that you could have issues like, there is a
clouded title of some sort. You say, you are still working out title issues.
Bill Fairman (01:08):
It could be that the property is on a dirt road. You
cannot get FHA financing if it is not a, you know, improved state maintained
road. You could have a shared well or septic tank. And that becomes an issue
too. Who is going to fix it? If it breaks, who is responsible for that? You
could have a shared driveway or private road. Again, these things are a concern
if, you know, they need to be maintained and who is going to maintain them, who
is going to pay to maintain them. Mobile homes, for example, you can get
financing through FHA on a double wide on land. It is considered real property,
but a lot of times they are in rural areas where you are going to have shared
water, shared septic, you know, shared wells. You have easements through other
people's property to get to them. The other thing you need to look out for,
too, is a little plot of land that the family had carved out for a, you know, a
child and now they have sold the place.
Bill Fairman (02:21):
Now you are going to be surrounded by this other person's
family and especially if it was had been some sort of a bank foreclosure, you
are probably not going to be pleasant to live around the family that had given
land to their child and then the bank foreclosed. You are probably not going to
have some nice neighbors around you, so you do not want to deal with that. As a
lender, we do not want to deal with that either because it is going to be hard
for us to sell it if the property is surrounded by family members that are not
happy that, you know, that there were foreclosing, if that makes sense. Now,
all of these can cause mortgage issues and you as a investor want to buy
something that is going to be easily saleable because you always want plenty of
exit strategies. If you are buying it as a rental portfolio and you do not
really care that it has got title issues because you are not planning on
selling it anytime soon. Well, you still need that exit strategy because you
never know what happens down the road. And you need to prepare for it. And as
it is, real estate is not liquid, it is even less liquid if you cannot sell it.
So do not, you know, box yourself in dealing with these types of issues. So
again, thanks for joining us. Bill Fairman, Carolina Capital Management. Do not
forget to share. Do not forget to like us. And again, we have videos that are
available in the archive, depending on the platform you are looking, just pick
a spot up, down or sideways. Have a great day.

 

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