9 Types of Houses to NEVER BUY

[Music] guys what I'm about to do is walk you through nine different types of houses that I never want you to buy I mean never ever ever ever ever please do not buy these types of houses please do not do this your outcome will be if you're disciplined enough to not buy these types of houses after watching what I share with you today that you're gonna make a lot more money you're going to be way happier you're not going to get burnt out and you're not going to spend the next year trying to figure out how to get yourself out of all these bad messes that you've got yourself into your money is going to be tied up in real estate it's not a quick fix it is forgiving but it's slow to forgive it takes a long time and a bad deal can easily take a year two or sometimes three years sometimes a lifetime to get out of right so I don't want you to buy these types of houses I need you to understand this one one very very very important lesson it's better to not buy a house at all then to get caught up in the emotion and let your emotions lead you to buying a bad deal because if you buy a bad deal it's gonna be a very very bad next six months to a year for you and I don't want to see that happen to you I'm going to share with you some reasons why I tell why I've been through these and why I really want you to avoid going through them as well so let's talk about the first one buying a house with a bad layout so what most investors do is they get into this situation where they start learning the business and they've been in it for six months and all the sudden they're an expert right they've hardly bought any houses or they wholesale houses and they're like well the coms say this will the comps say that the comps say this comps are right house is going to sell what's gonna sell for we play with ranges ranges not what the cops say just because the comps say something about a certain house say a house is 1,400 square feet and all the other 1,400 square feet houses are selling for X amount of dollars price per square foot that doesn't necessarily mean that your house is gonna sell for that if it's got a horrible layout if nobody wants to live in that house it's gonna be hard to sell it if it's harder to sell it and everybody else else's house has a better layout than yours people are going to buy those houses which are your competition over the one that you have so what are some types of bad layouts that I've run into in my career that I want you to avoid so number one not having the mass the bathroom inside the master bedroom if the master bathroom is in the hallway and that family member or the parents or the people that own the house have to get out of their room walk into the hallway just to get ready in the morning say they have guests or family members or other people walking around all the time this is a deterrent for most people this is a very big deterrent so please do not do this what about another situation that bad layout with master bathroom if people have to walk through another room to get to the master bedroom to get to the master bathroom this is a very bad situation as well it should be easily accessible it should have multiple entrances if you have multiple parties living in that same house that need to use that same bathroom so if it's a 3-1 and it's inside the master bedroom but everybody else in the family has to go through that bedroom to get there that's not going to be a very good layout for the people that potentially want to live there and another bad layout and something that you really need to focus on and try to avoid is this and this is correctable right do not buy a house and never put two standing showers you need to have at least one bathtub I see people do this all the time and they they take out a bathtub and they put two really nice standing showers and they just destroy themselves because they eliminated a huge part of the market right what if they have children young children that they need to bathe in the bathtub what if they're older and they have to sit down to basically bathe themselves how can they do that in a shower so I just gave you three really good examples of bad layouts guys please pay attention to this it's going to save you a bunch of headache and you're gonna make a bunch of money if you buy the right types of houses but these types of houses if they have a bad layout will not sell for the full market comps I promise you I promise you right number two auditions this is what's really frustrating to see a lot of investors get hurt on because they think somehow that there's an addition on a property that that's added square footage say the house is sung at a hundred dollars per square foot if you add a hundred square feet or 200 square feet or 300 square feet almost always will you never get that full amount price per square foot that the original build of the house gets also guys be very close pay close attention to this if you're converting a garage I see this all the time with whole stairs the house will be 1400 square feet it'll be a 400 square foot garage and then they'll say all the sudden the house is 1,800 square feet they'll times that by the price per square for the house as if that's the new value as if that garage that they eliminated has no value at all guys garage conversions are mainly for people who are doing owner financing and rinsing properties because they get higher rent if they add an extra bedroom but if you're trying to retail houses and sell houses garage conversions are not good especially if you're in a neighborhood where people value which is usually an upper-middle-class neighborhood having a garage because most families have a car for the husband a car for the wife a car for their adult children however we need to have and they need a garage right they need a garage for storage guys this is a bad idea you do not just simply gain the square footage of a garage conversion plus additions if they're done poorly unless they're done very very well you're never going to get that same price per square foot and people run their comps as if they do and they get murdered and they lose a bunch of money negative back up what the hell does this mean so what does it mean when I say a negative back up I mean that your house is backing up to something that's negative that's going to affect the price of the property if it's backing up to power lines or train tracks guys think about it if it's backing up to a commercial strip like a strip club or liquor store this is not going to get you the same price per square foot as the other comps it just doesn't I don't know why people think it does but people do this all the time and it makes a it's a huge mistake and it hurts the big-time right so just be very careful now if it backs up to something positive a golf course water a lake a creek that is more valuable land is waterfront it's going to increase the value don't buy something that's gonna make the value go down now other investors numbers it still shocks me that people do this right you should never take another investors numbers under the agents numbers you always run your own numbers I can't tell you how many people call me every single week and say Conor I understand it's your real estate coach he has students all across the country I got into this deal and it's not working out that well and I'm like whoa what do you think the numbers are what did you run your own numbers well here's the thing I bought it from a wholesaler and that wholesaler said it was going to sell for 250,000 and we're struggling sung it for 180 should I trust someone else's numbers if you do not know how to run your numbers then you should find someone to partner with that does until you figure it out on your own because you should never trust an agent or another wholesaler the person who's gonna make a commission or a chunk of money off of you if they convince you can convince you that it's gonna sell for more why believe the person that's making money off you make your own decision on your own now structural issues guys now I'm not just talking about foundation issues here in Texas we have really bad foundation issues so there's Mississippi a lot of parts of the country do I'm talking about major structural issues especially if you're on an incline some parts of Tennessee in other parts of the country houses are built on the side of a hill if you have major structural issues this can destroy your life because it's going to be very very expensive they have to drill piers super deep and basically you know these house that could be torn down I see people make bad decisions they go ahead and close on the property before they bring a structural engineer so I'm not saying don't ever buy a house with bad structural issues but please before you do make sure that you talk to a structural engineer first and know the price that you're gonna have to pay don't ever call on a property if you don't know what you're doing unless you know what you're gonna have to pay to fix it up this is a very big mistake it's gonna hurt you now biggest what I mean the biggest I mean the biggest house on the block if every house is 14 to 18 hundred square feet do not buy the super mansion that's three thousand square feet that's sitting out that looks like Cowboys Stadium in the corner it's gonna be impossible so it's gonna be very tough Plus what a lot of new investors do not understand is as you go up in price as you go up in the size of square footage a 1200 square foot house its selling for $100 a square foot that $2,400 $2,400 for $100 a square foot the bigger you go price per square foot goes down this is very important I see this a mistake being made all the time people look at subdivision comps to like six houses in here sung at 100 102 a square foot but they're all like 14 1600 square feet and then they take a 2,400 square foot house and they assume that's selling at the same price per square foot when it's really some it may be $80 a square foot and people get murdered and this is how you hear these horror stories about people losing a bunch of money houses be very careful if you don't know how to appraise the house or you don't know how to run numbers and have accurate comps bring someone in for consulting call an appraiser bring someone in who knows what they're doing this business can be risky but if you do it right you're gonna make a fortune and change your life now comps kind of goes in the same thing if you don't have comps do not buy the house right people buy houses all the time and then they come to me and they're like well they're one really really any good comps but I saw one it was like two miles away that kind of looked like the house guys that there's not good comps supporting you're disappointing your decision don't buy the house right it's way too risky especially if you don't know what you're doing now you can buy houses off of motion you can't just simply say I feel like this is a deal I hear this all the time well I feel like this is just a really good deal I really think that this is a good deal but they have no facts and reason behind it we don't buy houses off of motion we buy facts off numbers are we buy houses off numbers facts and reason that's how we buy houses so we don't get hurt just don't go buy a house because you feel like it's a good deal because you're gonna feel like once you buy the house and you can't sell it this one's very important one some of your old low end markets what is it one one that is a 1-bedroom 1-bathroom house also called a shack with a bathroom in it right do not buy a one-bedroom one-bath house they're very hard to keep rented in fact while we're on it really you should not be buying two-bedroom one-bath houses but I understand a lot of y'all have older markets and there's a lot of two-bedroom one-bath houses that were built back in the day if there's a lot of them in the subdivision and that's all that's there you're ok with it right because that's all that's available but if you have a bunch of three to nice brick houses in a neighborhood and everything else is a one one or two one that doesn't fit in you're never going to get people to buy that house or rent the house where they can they're going to continuously move out guys think about it right who buys a 2-bedroom 1-bath one-bath house or one-bedroom one-bath right it has to be either a single individual a single mother or a very small family you're eliminating a huge part of the market nobody wants these but please don't go try to add additions guys another thing is while we're on it I see people getting hurt left and right at editions thinking that somehow they're going to add the square footage to it and make it a 3-2 and it's going to be worth the same is that nice new 3-bedroom 2bath that's a little bit newer down the road it doesn't work that way guys please protect yourself please have someone in your own market that can help you with this a mentor it's going to save your life now the last one use some common sense trust your gut if it feels bad it is bad go with your intuition if you think that this somehow could turn bad on you it probably will if you're trying to make a deal a deal like if you're trying to figure out if I do this if I do that if I do this and it's somehow going to be a deal then if I do this that is usually not a deal you're not getting creative you're not being a transactional engineer you're trying to convince yourself there's money and profit in a house that's not really there and you're about to put yourself in a bad spot guys I really don't want you to get hurt I've bought a lot of these types of houses which is how I know I've had a lot of headache getting out of them in fact I still have one that I'm struggling to get out of right now and I still make mistakes today so please avoid these types of houses that don't cost guys if you liked today's video or you go out and avoid buying with these houses or you know somebody this but leis types of houses please support what I'm telling you today put the story in the comments below guys if you haven't already done so subscribe to channel support this channel I want to help you grow your business so help us grow this channel guys I'll see on the next one have a good day [Music]

Channel: Investor Army

Views: 414,836

Rating: 4.8449283 out of 5

Keywords: 9 Types of Houses to NEVER BUY, real estate investing, rehab houss, buy a house, how to be a real estate investor, risky houses to buy, buy houses that are risky, types of houses, investor army, its bad to buy 110000 house, types of homes to buy, which is the limit to buy a house in the army, 9 houses you should never buy, 9 rental properties you should never buy, best types of homes to buy, houses not to buy, types of houses not to buy, what type of house should i buy

Id: ZhZw9IMYqtk

Length: 12min 38sec (758 seconds)

Published: Fri Dec 15 2017