When underwriting, make sure you get all the information before you make your offer! In this real estate negotiation class, Rob Rowsell talks about covering all your bases. If not, you may end up paying way more than you have to! Sometimes, brokers don’t ask all the right questions. Also, sellers will often provide misinformation, whether intentionally or not.
Real Estate Negotiation Tips – Get the Right Info, Get the Right Price
Rob opens up the class by recalling something he discovered while researching for a property deal. When he looked at the seller’s T12 (trailing 12 month) form, he found $12,000 listed under “Other Income”. Rob’s investment team had not yet asked what this extra income was, so he did. The seller replied that the money was actually Nevada state reimbursements. Since those do not count as actual net income, the seller had incorrectly reported the income report form. Technically, by listing that amount as income, the seller overvalued the property by over $150,000!
Because neither Rob’s team nor the broker caught the error initially, this could have added up to huge losses down the line. In the short term, it cost time in the real estate negotiation process. As we all know, time is money. So remember, it is important to have a team of experts helping you, but make sure that you do your research as well. If you are not knowledgeable about investment forms, tax codes, and income reporting, it could cost you big time!
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Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!