EXPOSED! The 4 You Must Never Buy | MASSIVE HOMEBUYER MISTAKES!

Today we're diving into a topic that is as equally as important as knowing what homes to buy, knowing what homes not to buy. As a seasoned broker, investor, and mentor with over 40 years of experience, I've seen my share of real estate pitfalls. In this video, I'll be revealing 4 types of homes that you should steer clear of. So get ready to learn the red flags and protect your investment. If you want to connect with me one-on-one, make sure to book some time with me. Find that link down below. Welcome back to the channel. I made this channel for the new and experienced investor, those of you who want to live the life you've always wanted through real estate. Make sure that you like and subscribe and share this video with your friends. What homes not to buy? Let's talk about one. For me, houses with structural problems. And the reason I don't buy houses with structural problems Is because yes, they can be fixed, and yes, there's companies out there that fix structural issues, and yes, there's companies out there that give you a guarantee of 10, 15 years, but who knows if they're still going to be in business 2 months after this is all done. In California, we're a total disclosure state. You must disclose that to the next buyer, and if you were buying a home And you have a reason to be looking at all the disclosures and you find that, hey, there is a big structural problem here and half of the side of this building was falling down. They propped it back up, they put a bunch of cement under, and you're good to go. Okay, not me. I'm not good to go. And I'll tell you a real quick story. I had a client, called me, said, Joe, I'm thinking about buying this house in San Clemente and it's overlooking the ocean, and San Clemente's notorious for homes sliding downhill. And I said, awesome, great, I wish you luck, I can't represent you. And she says, well, I have a son who's a structural engineer and he's checked it out and we're good to go. She calls me back a few years later and she says, Joe, Just want to let you know the house is sliding down the hill. I go, okay, thank you for letting me know. You know, glad I wasn't involved in that transaction. So I do not do structural damage homes. Hope you're getting value out of these videos. All I ask in return is that you hit that like button. Let's talk about some houses next to a busy street. And yes, I don't have a problem buying a house Anywhere. It could be an A neighborhood. It could be a D neighborhood. It really doesn't matter to me. As long as I can see there's 3 comps in the area that just sold recently for whatever that price is after repair value, I'm happy to buy it. So if I buy something for $200,000 and I can sell it for $400,000, awesome. If I buy something for $1 million and I can sell it for $1.5 million, awesome. It really doesn't matter to me. Fix and flip is really a numbers game, but when you're talking about a busy street, I usually take 10 to 15% off the after repair value for something like that because yes, a busy street is going to be just that. It's going to be noisy, and there are plenty of times that I've heard— I mean, I sell properties in senior communities, and in a senior community they happen to be close to the 5 freeway and it's very noisy. And, you know, I'm talking to the kids, which are, you know, adults, they're in their 50s, and they're looking for a place for their parents. Oh, Joe, don't worry about it, their parents can't hear. I mean, my parents can't hear anyway. And it's like, you know, I'm looking at mom or dad and they're going, yeah, we can hear, you know. It's like, this is too loud for us. So road noises, Let's talk about, you know, I talked a little bit about San Clemente and an ocean view home. Let's say there's a tract of homes there, and do you think that the value of the one that has the 180-degree ocean view is worth the same as one that's way inside the tract that doesn't have a view, but it's still the same house? No, it's not. So you have to take all those type of things into account. Let's talk about some houses under power lines. And believe me, I am not an expert on power lines or whatever it is they produce. There's just people that don't like being under a power line. They can actually be noisy as well. You can hear the power go through there. Depending on the size of the power line, A lot of people, you know, nowadays are very health conscious and they just don't want to be under power lines. So be careful if you're looking at a property that's under a power line. So like I say, look up, look down, look around, look all over, okay, to see what issues may be posed after you buy this house. Because remember, if you're flipping, you're going to sell this at the end of the day. So if they have these issues now, then you're going to have them later. Now you have a house that's under a power line, the normal after repair value is $500,000, but it's under the power line, but they're willing to sell it to you for, let's say, $250,000. Yeah, I'd jump on that deal. Okay, but you have to take into account all that and do your homework and do your numbers. Houses next to train tracks. Choo choo! Talk about noisy. I mean, you know, there's an old saying, are you on the wrong side of the railroad tracks? And, you know, it is true that C and D properties are on the wrong side of the railroad tracks. You really kind of never find the A and B properties on the wrong side of the railroad tracks. And not that there's anything wrong with it, believe me. I have several properties that I've purchased over the years that are literally right next to the railroad tracks, and they're condominiums. I'll even tell you where they're at. They're in San Juan Capistrano, and I probably made lots of money over the years. They've made me a lot of money as rentals. I still have them. I don't plan on selling them, but yes, they are next to the railroad tracks. So when I do go sell them, the closer they are to the railroad tracks, the less money I'm going to get at the end of the day. They have some that are away from the railroad tracks, but they're still close enough you can hear the train coming by, but not like literally 20 feet away from the railroad tracks. Yeah. Maybe 30 feet away. Which I own several of those as well. So again, flipping and buying properties is a numbers game. So whatever you think you can get at the end of the day after you do your numbers is what you should be looking at. By avoiding these pitfalls, you'll protect your investment and set yourself up for success. But before we wrap up, have you ever encountered a property that fits these categories? How was that experience for you? Let me know down below. And if you found this video helpful, don't forget to give it a thumbs up and subscribe to the channel. If you want to learn more about flipping, click on this video right here. Feel free to reach out anytime. I'm always here to help. Give me one.