OK, you’ve got some money saved up and you’re convinced the best way to invest that money, is to own Real Estate. Not a bad decision at all. So you find an agent or maybe you look for a house on your own, just to buy, rehab and flip for profit. Why not? Maybe, you’re buying your first home to live in for a year or two, with the intention of selling it and buying rental properties…. sounds good. You want to feel safe in your decision and hear an ad for a home inspection for $199 and decide to go for it because it’s less expensive than some of the other companies out there. They promise to look over the property to tell you if there’s anything wrong and are in and out in about an hour. It seems like a lot of money for one hour, but you feel better and buy the house. It looks like you got a pretty good deal and believe that once you put 10 or 15k into the bathrooms and kitchen, you can sell it and walk away with a $20,000 profit. Pretty cool.
Now, $10K of work into the property so far and Uh-Oh a heavy rain comes in and the roof leaks into the attic. Wait! The $199 inspector didn’t say anything about that. That’ll be another 7 – 12k, but you can still make some money, so you go pay up. A few days later you see some critter droppings so you call in an extermination company. It happens to be a good one, so they crawl under the house and let you know that there’s some serious foundation cracking that needs to be fixed and they estimate it could cost close to 10k to fix minimum.
Not only does it look like you will be financially upside down on your investment, but you have also had to spend a whole lot of time dealing with contractors and you’re mentally exhausted. So let me ask you one question…. Does that $199 Inspection sound like a good idea now?
Leading the industry through his innovative approach, Dino Katsiametis has over 17 years of extensive experience within mortgage, banking and real estate industries. His passion for the collective financial and investment services sector combined with his distinct insight, has catapulted Money Matters with Dino onto the forefront of financial news.
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