Cheaper is better, right? Well, when it comes to real estate services, that is usually not the case. In fact, the cost for you can even be higher in the long run. Arie van Gemeren highlighted this as he shares the journey of multiple missteps he encountered in his deals. He discusses the dangers of not being properly capitalized - imagine if a significant amount has to be escrowed by the bank a few days before the deal! Arie also stresses the need to understand code compliance for less stress in property management.
[00:01 - 06:00] Opening Segment
[06:01 - 12:02] An Empty Bank Account After a Deal
[12:03 - 23:26] Do Not Pick Services with the Lowest Cost
[23:27 - 24:48] Closing Segment
Tweetable Quotes:
“I'm in the investment business. I know, someday, I'll probably want to manage investor money. But I really need to learn with my own money, make my own mistakes on my own dime before I try to go bring money in from investors.” - Arie van Gemeren
“My first piece of advice for anyone is to always make sure you have capital leftover in the bank after you buy a deal.” - Arie van Gemeren
“Have a strong relationship with your loan broker, ask, make clear the things you're concerned about, and make sure that banks not going to play games with you. ” - Arie van Gemeren
“Exhaust all resources to find out if your units are all legal and conforming before you buy something.” - Arie van Gemeren
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