Hello everyone,
We’ve been seeing more and more new investors being duped by brokers and real estate sales agents. Please be aware of the following when looking at the proforma the broker/sales agent sends you.
- They subtract the capital expenditures
- They don’t account for the cost of property management
- Underestimate the cost of repairs and maintenance
- Inflate the market rent
We’re seeing brokers and sales agents omitting these items and promoting the low cost of Pittsburgh real estate. And we’re left with giving the bad news. Pretty-please-with-sugar-on-top do your own research and calculations. The economic incentives for brokers and sales agents aren’t in favor of buyers. Especially investors. There are lots of honest brokers and agents out there. Just be sure to vet them carefully.
Please feel free to reach out to us if you have any more questions about this.