🃏How NOT to Invest in a House of Cards
Happy Tuesday!
Here is an Idea, an Action, and a Question to consider this week.
Idea
As an investor-agent, you'll often find opportunities that initially seem promising but reveal significant flaws upon closer inspection. While you can’t predict the future, you can certainly identify hallmarks of a sound investment.
Consider the case of properties in regions prone to natural disasters, like Florida. The resilience of a building in these areas is critical. Remember the house in Mexico Beach that remained almost untouched despite the devastation of Hurricane Michael, a Category 5 storm, in 2018? This property stood out because it was built using advanced construction materials and techniques, proving its durability against extreme conditions.
While you might not always get this level of quality, you need to do your due diligence and make sure that your investment isn’t a house of cards. Before you invest, thoroughly investigate the construction quality, deferred/ongoing maintenance, and financial stability of the property.
Action
Arrange site visits to properties built with cutting-edge materials and methods in your area. Learn about what’s new and innovative when it comes to quality construction. If you don’t know the newest trends/codes/methods, it’s hard to know if an investment is sound.
Question
Have you ever encountered a property that initially seemed like a perfect investment but later revealed significant issues? How did this experience change the way you evaluate potential investments, especially in disaster-prone areas?
See you next week,
Matt “Roar” Gardner
Real estate investor-agent, Author of Supersonic Real Estate: Light Your Afterburner to Accelerate Your Investor-Agent Career (Coming Soon!), and keynote speaker.
