Jeannie Niles Real Estate Investment
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Real Estate Horror Stories
We have all heard the horror stories about real estate ownership. It seems people are more likely to share problems than to say, “By the way I made $250,000 in five years on one property.”
Here are a few adventures in property ownership:
The owner above your newly refurbished condo didn’t repair a water leak, causing the walls behind your brand new custom cabinets to become infested with foul smelling mold. A contractor then tells you everything has to be ripped out again.
One Monday morning, you discover an intriguing newspaper article featuring the DEA, the SWAT team, and that nice middle aged couple that rent your home. Reading further, you find that the couple has been arrested for attempted murder, the front door of your property was opened with a battering ram, and stockpiles of assault weapons and cocaine were confiscated during the raid.
Of course, the damage to your property is not reimbursable by the authorities because they wrecked your place “in the line of duty.” Talk about “having a Monday!”
After closing escrow, but before taking possession of a newly acquired condo, you receive a phone call notifying you that the condo has been flooded. The contractors you hire then tell you the hardwood floors and wood cabinets need to be completely replaced, and politely note that the expensive granite countertops will be destroyed in the process.
Your son works for a mortuary, and calls to let you know that he picked up the tenant who’d just renewed his lease for another year.
You often serve your own three-day notices to pay or quit. After serving one such notice alone, at 9 p.m., you are told by a passing squad car that your tenants are member of the Hell’s Angels and hate women.
You receive a frantic phone call from one of your tenants to tell you that, a half hour ago, he discovered his very obese, unkempt and completely nude neighbor trying unsuccessfully to hang herself from the door knob. The woman lived, but your tenant requires counseling.
If the above sound fanciful, believe them. All of them have happened on my own properties. Considering how long I’ve been investing in real estate, the number of problems has been small.
But they do stick in one’s mind!! And you know what? Even with the occasional hassles and scares, I still made a lot of money and I learned some things too!
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Income property has once again become “Income property”.
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There are many small income properties available in the area. Prices here have declined over 50% since the peak of the market late 2005/early 2007.
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It’s possible to obtain some great apartment financing. 25% down payment and interest rates at 6% or slightly below.
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Cap Rate is an investment tool for analysis that enables an investor to compare one investment to another.
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Cap Rate is the best tool for determining the value of an income property.
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Some of the most outrageous episodes in property ownership that the owners lived to tell about.
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Only 5% sales agents or brokers actually own investment property, and only 10% actually sell a property.
Every investor's situation is unique, and I have over 25 years experience solving problems. Use the form below to ask me about your unique needs.
Jeannie Niles Real Estate Investment
P.O. Box 317
Palm Desert, CA 92261
P: (760) 360-4020
F: (760) 340-9069
E: jniles@realestate-investment.com
