Sometimes you see about with a property that makes you wonder if maybe it isn't a deal-breaker, but it could be something that warrants some additional explanation or investigation. RED FLAGS! Here are a couple of examples of red flags to watch for.
Price Adjustments - Have there been big price adjustments or a lot of little ones? One or two changes, not a big deal, it happens. But if you're seeing a lot of them or significant numbers, you have to wonder, why is this listing not getting any traction?
Going off and on the market, multiple times - Buyers cancel, it happens, once maybe twice, but if you're seeing it multiple times, you have to wonder, why are Buyers putting in an offer to buy a property and then canceling? It may be a disclosure issue or a negotiation issue — something to ask about.
Statistics - How are the crime rates? The school statistics? Get on the internet look at statistics. Anything important to you. These are all good things to check out before you start getting invested in a property.
Neighborhood - Drive through the area at different days and times. And what about retail? Are businesses opening up, or are they closing down? What sort of an area are you looking for? An up-and-coming neighborhood or something already established?
Disclosures - Are you being asked to waive disclosures? Even a fix and flip investor knows the work that they have done. And they have, at least, had the utilities turned on. If you are dealing with a bank-owned property or a probate sale, then no one will have first-hand knowledge of the property. But, if you're being asked to waive disclosures, ask why!
Less Than Professional Craftsmanship - It isn't unusual for a homeowner to make their repairs with less than professional craftsmanship unless they are a trade professional. But, if you are walking through a property that is a recent flip, or where a lot of replacements have been recently made, and you see less than professional craftsmanship, you may have to wonder what other repairs - that you can't see - may have been done, and done poorly.
