I had a client a couple of years ago that purchased 2 properties as investment flips. When I came aboard I made it clear which geographical areas I had experience in investment properties. They agreed that the areas they wanted to buy in were the same areas so everything looked good. After months of running comps, putting in offers etc. it was evident that they were not going to be able to buy in the areas we discussed. I was then contacted with the great news that they had purchased 2 properties. One of these was in Garland.
Long story short, against my advice he added features like manufactured hard woods and other finishes that were above what the comps were showing us for the area. We listed at a price that I advised was too high and it sat on the market for like 3 months. I did get him to agree to a couple of price reductions which did gain a bit of interest however not enough for even a reasonable offer. In my clients opinion that it was my fault for not marketing the property correctly or working hard enough to sell it why it sat on market.
After much consideration I decided that I would terminate our relationship / listing and we both go our own ways.
I kept an eye on the MLS and they did sell it after 7-8 months and I’m sure with carry costs they were lucky if they broke even on the deal.
The moral to this story is know the area that your client is investing in. In some cases if they don’t have enough to invest in the areas you are familiar with then maybe wait until they do, our buy one $200k property rather than two $100k properties.
One other issue that came up was 80% of calls we received were from Spanish speakers who spoke no or very little English and I don’t speak any Spanish. If I had know this market I would have ensured to have had a Spanish speaker get all sign calls and be the primary person when dealing with leads.
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