Show037: Walking Away From a Property AT Closing- What We Learned

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Yes, you read the title correctly.  We recently walked away from a deal literally on the day of closing at the closing table.  

While it was an extremely difficult decision to make, at the end of the day walking away saved us a ton of money up front that was NOT part of the plan with this property.  Emily and Kirk share with you the details of, what seemed like a great property.  They break down the numbers and tell you exactly why this property worked with their portfolio and what their future plans were to make it an even better investment.

Then, the Final walk thru inspection happened just an hour before closing and what Kirk walked into was a disaster.  Missing tenants, properties destroyed and angry tenants.  Working with our trusted realtor, Kirk made the decision to walk away.

Tune in to hear all of the details and just why walking away, although difficult, was the right decision for our business.

 

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What You'll Learn...

  • Why it's important to have a trusted and opinionated realtor
  • The importance of being an 'attentive landlord'
  • Exact numbers of the property and why it was a good deal
  • Why to persevere when roadblocks stand in the way in this business.



Resources Mentioned In The Show...

 

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2 Comments

  • Nicole Williamson

    Reply Reply October 21, 2015

    Great story and great learning experience!

    That is definitely a disappointment. But you’re right, the landlord is now left with that mess that will cost WELL over $500. You were nice to start at $10,000 back. And that was just damage and general updates. How was the roof, electrical, HVAC, and other big-ticket items?

    I’m betting this landlord will do the bare minimum to fix the property….OR!…perhaps he will get his head out of the sand and call you guys back sometime soon with a deal that works.

    PS. Don’t worry about your possible future evictions to serve. 😉 Going back on your comments about being a good landlord that takes care of the property leads to better relationships with tenants…this will also usually reflect even when you have to evict. I have gone through a few evictions and started many evictions (that were paid off and cancelled). Because I care for the property and am kind, neutral, and professional, I have not had a single tenant get angry at me or destroy the property because of eviction.

    • Emily

      Reply Reply October 25, 2015

      Thanks for the comments! It’s funny just the other day I saw the property re-listed on the realtor’s website and it said “fully occupied”. I’d be interested to know what ended up happening with the tenants. It was a bit of a dissapointment, but in a way it feels like we dodged a bullet.

      The big ticket items actually weren’t actually in too bad of shape. The roof would need replaced in a few years and some minor electrical things, but nothing too major.

      Either way we are on to the next one! Where do you invest?!

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