Our military oriented real estate investing blog.
I learned a painful but crucial lesson from my first shot at Real Estate Investing.
After I learned the basics of Real Estate Investing, I thought I was ready to jump right into a deal. I got ahold of a turn-key provider and immediately started looking at deals. The only kind of analysis I did was subtract the mortgage from the rent and tried to see if that made any sense.
By the way, a turn-key investment property is simply a fully renovated, tenanted, managed, and ready to go investment.
Red Flag #1: Communication with the turn-key provider was terrible. They didn't seem to have their shit together and they dragged out every step.
Red Flag #2: They wanted me to buy with cash only. The reason this is a problem, especially since I was NOT able to see the property, is because a cash purchase would not require any inspections or appraisals. Therefore, I would never really know if my property was actually worth what I was planning on paying for it.
Red Flag #3: The purchase contract...