734: Seller Red Flags I Should Have Seen Before Doing a Nightmare Deal w/David Pere

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 2 March 2023

⏱️ 67 minutes

🔗️ Recording | iTunes | RSS

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Summary

There are a few real estate investing red flags that an investor should ALWAYS look out for. If you don’t, you could end up in the same situation as David Pere, who just finished off a four-year lawsuit after a seller tried to get rid of a deal that wasn’t even worth the dough. But David wasn’t a rookie when this happened. This was David’s third deal after having multiple units under his belt. And even though he was able to walk away from the lawsuit, the downsides, years of stress, and wasted opportunity is what he wants to make sure you DON’T repeat. This deal didn’t look fishy at the start, but as soon as closing came, difficulties started to crawl out of every nook and cranny of this property. Made-up leases? David’s got them! Weirdly intertwined relationships between sellers and property managers? It’s there too! Repairs that never got made? You bet! And this isn’t even the worst of the deal gone wrong. The story gets even more unbelievable, fraudulent, and downright confusing as David spills the tea. But this isn’t a pity party. All while this lawsuit was happening, David has been scaling his rental property portfolio, reaching financial freedom, and still doing the best he could to build wealth. This story is NOT meant to scare you off from investing but to show you that any deal, no matter how bad it gets, can be a learning lesson that allows you to reach your goals even faster! In This Episode We Cover: The “more doors” trap and why scaling bigger isn’t always the best move Lease options explained and why a seller would risk signing one Mixed use real estate and the multiple streams of income that come from one property Why you should ALWAYS get your team into a deal before you sign the contract Red flags David missed that you should ALWAYS look out for when buying a new property Taking a seller to court and what to do if you find out there’s fraud in your deal Why savvy buyers (and sellers) always document EVERYTHING said in a negotiation And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch BPCON2023 Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram David’s YouTube Channel Work with David Rob’s BiggerPockets Profile Rob’s YouTube Rob’s Instagram Rob’s TikTok Rob’s Twitter Case Notes The 6 Best Ways to Minimize Your Chances of a Lawsuit 3 Strategies for Using a Lease Option to Invest in Real Estate Creatively Investing in Mixed Use Commercial Property Book Mentioned in the Show The No B.S. Guide to Military Life by David Pere (For FREE!) Connect with David Pere: David' BiggerPockets Profile David's Instagram David's Website Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-734 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the Bigger Pockest Podcast Show 734!
0:04.1	Yep, I've learned that lesson more times than I should have learned that lesson, but this
0:08.0	was definitely the biggest learning of that lesson.
0:11.9	Um, let's see, setting unit goals, right? I think going, going big just because you can,
0:17.6	right? Setting a unit goal, I don't know that a unit goal, I think that's kind of, I don't
0:22.0	want to say that's an ego thing, right? Because I think that it's good to have goals,
0:26.6	but I don't think you should get caught up in goals just because the number sounds cool, right?
0:32.9	What's going on everyone? This is David Green, your host of the Bigger Pockest Real Estate
0:36.9	Podcast, the biggest, the best, the baddest real estate investing podcast in the world,
0:41.1	here today with my stellar co-host Sidekick and partner in fighting crime, Rob Abbasolo.
0:48.1	Rob, how are you today? You know what, feeling extra chipper because I think, after being sick for
0:53.6	16 days, David, I think I beat it. I think I beat this. I think I'm back to my usual self.
1:00.4	Let's talk about the things I've seen you overcome in the short period of time that I've
1:03.9	known you and we've been hosting a podcast. You got into fitness and then like,
1:07.6	destroy your lower back and spent like months basically as an invalid. You had like 75 cc's
1:14.3	of plus pumped out of your throat in what was probably the most painful throughout condition ever.
1:20.3	We recorded a podcast where you really couldn't talk and you use one of those like voice synthesizers
1:25.1	that people hold to their neck just to be able to say something at all. People had no idea.
1:28.9	The Stair Bruce? Yes, the worst Bruce I've ever seen in my life, which is saying something with
1:34.0	my sports and law enforcement background. Your butt looked like a version of a different galaxy
1:42.5	with all of the intricacies there in. Never have I seen a Bruce like that and somehow you survived
1:48.2	that too. Well, you know, I'm really, I love interstellar. So any galaxy I can get going,
	...

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