“A first-time investor told me he was looking for something small and he ended up purchasing a 10-plex property,” Kraig Schwartz, an agent with Sutton Group Your Real Property Team, told REP. “I told him to purchase the property but to let me manage it.”
The client didn’t listen.
He had business cards made up, which included his personal cell phone. As is usually the case for landlords, his tenants had various issues with their units and contacted the landlord.
It proved to be too much work for the client, who eventually decided to sell.
“He told me he would never be a landlord again,” Schwartz said.
The property was originally purchased for $650,000 and eventually sold for $900,000 five years later. The landlord was eventually able to charge $9,500 just prior to selling – a $2,500 per month increase over the earnings he made when he first purchase it.
He certainly made some money, but he could have continued to cash in had he originally listened to Schwartz.
It’s a story many agents will likely identify with. Many give well-meaning advice to clients who, perhaps out of sheer hard-headedness, decide to spurn the evidence of professionals.
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Seasoned agents have seen it all, and one industry veteran shares the nitty gritty details on his most interesting transactions.