I was talking to a successful real estate investor the other day and he asked a person who was looking to buy a home this question, “Are you an investor or a speculator?” You should have seen the puzzled look on the buyers face!
The successful investor went on to explain how important it was to know all the facts before you buy. I really liked it when he pulled out his investment calculator and went to work crunching the numbers. However, it wasn’t long before he asked the buyer about the price of the needed termite treatments and wood repairs. The buyer didn’t know the exact numbers and all he had to go on was what others had guessed they would cost. The investor then said, “I don’t invest in guesswork. You should always know exactly what shape a home is in and what the total costs are before you ever spend a dime on it. Speculators, on the other hand, will buy a home and hope that everything works out in the end.”
Ladies and gentlemen, that advice is profound. I can’t tell you how many people I’ve seen over the years that have bought homes without knowing all the facts. Many of these speculators have also learned the hard way when they saw their “dream home become a nightmare.”
Don’t speculate with your hard earned money, get a termite inspection. If you are going to purchase a home, you need to call us at (949) 631-7348 and order a thorough termite inspection. You should also order a thorough home inspection. By doing this, you’ll eliminate many of the risks and you’ll be able to start putting some “real” numbers into your investment calculator so you’ll know exactly what kind of investment returns you can expect to earn.