I found this post on the web while doing some research on an investment club someone mentioned to me. The story was posted by an investor who apparently joined one of these investor groups that has the entire process all laid out via a pre-established “network”. They tell you where to go, what to buy, which realtors and lenders to use, which builders to buy from, etc. And the network gets kickbacks from all of these people in exchange for bringing in busloads of buyers.
As I read it, I thought to myself “this is exactly why we try to keep our investor clients away from these new starter home neighborhoods in the Austin outskirts.”
Here is the investors story:
“I bought a new house in {City Removed}. I trusted everyone they assigned to close the deal (title company, insurance company, appraiser, closing agent, property management company, etc.). Real friendly people! To start the nightmare, the property management company refused to market the home until closing (they said they could not show the property while it was being built).
(Steve’s comment: I don’t know any property managers who will lease a house before the new owner closes on it. I personally wouldn’t do it either. All sorts of problems could result)