Warning: fsockopen(): php_network_getaddresses: getaddrinfo failed: Name or service not known in /home/irreia/public_html/wp-content/plugins/topsy/topsy.php on line 337

Warning: fsockopen(): unable to connect to otter.topsy.com:80 (php_network_getaddresses: getaddrinfo failed: Name or service not known) in /home/irreia/public_html/wp-content/plugins/topsy/topsy.php on line 337
Property Condition Report Short Comings | International Residential Real Estate Investors Association
Friday July 21st 2017

Join Us On

join the IRREIA linked in group

Property Condition Report Short Comings

Lenders require and rely on the property  condition report because in concept this report should identify  all immediate  requirements, establish needed reserves, and either support or debunk the  purchase price of the asset on the basis of physical status.  Unfortunately, as investors making this  assumption is risky.

First, the report  writer will not have actual sources bid required improvements and therefore estimates of costs are often useless.

Second, the report writer normally does not actually  physically  inspect each and every item individually relying on samples.  This can lead to large oversights.

Third, the report writer’s  skills are not normally as global as the report will require.

Fourth, the report writer does not have your vision of where the project will go which weakens the product.

Fifth and possibly most important, the report writer’s cash is not on the line.

The prudent investor will therefore rely on a physical inspection of each and every unit, building, amenity, and grounds item (if I’ve not been clear, the investor will physically inspect every item).  If the investor is unable to do this, the investor should use every available means to gain as comprehensive of understanding of the asset as possible and discount significantly for this handicap.

“The IRREIA - Making residential real estate investing more fun and rewarding
through better education, tools, information, and networking!”

sign_up_button.jpg

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Leave a Reply


Warning: Illegal string offset 'solo_subscribe' in /home/irreia/public_html/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 304

Subscribe without commenting