Make sure REO houses don't have outstanding water bills
Make sure REO houses don't have outstanding water bills
You might be getting into this to do luxury homes or multi unit apartment complexes. Maybe youll only buy one a year, maybe youre going to buy seven or ten a month. Perhaps you will only get houses from seized property auctions or specialize in wholesaling bank repossessed homes. You have to come up with a model that works regardless.
Thats a big struggle in itself. I remember driving different areas of town and trying to figure what I wanted to do and where I wanted to buy.
I was so busy and everything was so crazy. It was tough. But I learned as time went on. One of the things that I learned is how important water bills are. Water is a big one.
If you get ready to go to closing and all of a sudden discover that there is a $1200 past due water bill on the house you have a problem. In many jurisdictions, that water bill becomes the possession of the owner. You just bought a nice, big bill.
I want to make sure that water bill goes back on the seller right? On the REO houses there is likelihood that theres old water bill out there nobodys paid.
When I go to closing that bill is not coming with the property. Somebodys going to pay it before I got to closing and its not going to be me.
So thats where the bank selling the house has to step up and pay that.
Remember to call the water company. That definitely needs to be a part of your system.