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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Underestimating RE Posted by Tom on May 04, 2009 at 8:31 AM In Reply to: Re: Amen! posted by Kristine-CA on May 02, 2009 at 5:53 PM I suppose that underestimating the knowledge & experience is the ultimate answer. From the neophyte investor’s viewpoint I thought it was because they’ve bought one or two homes and have never had any problems with them, so therefore they concluded buying and selling RE is easy. Like nearly all investments, it sounds so easy in the abstract but doesn’t translate to reality. If you exclude buyer’s overpaying for RE (non-title issue), then I suspect a rather minute percentage of SFR transactions engender problems. It would be interesting what ALTA records indicate the percent of SFR title insurance claims. I forget the exact percentage, but I’ve read that forged signatures have ballooned in the past decade or so. ALTA history wouldn’t include homeowners who never submitted claims e.g., those that paid cash for SFR where title insurance wasn’t required or those who financed but decide to forgo the title insurance to save $$. Big mistake! When you do come across problems, they’re whoppers. I come across one about every year or so. Encroachment is a big problem and professional liability of builders, surveyors, attorneys is quite often an issue. I'm surprised at the lack of thoroughness of many general practicing attorneys. From my experience if the owner can hold their cost of curing to four figures, they lucky. I’ve seen several in the $25-$50,000 range and heard of higher costs to cure problems. I’m sure title insurance attorneys could write a book on the title issues that they’ve seen. This doesn’t include the war stories of investors buying junior liens, where they thought that they were buying superior liens. You bring up a good point about independent thinking. One of the valuable lessons that you can teach your kids is to distain the conventional wisdom. Investors will educate themselves in time, but it takes hundreds of transactions and you’ll never know everything. I’d recommend investors investing 25% of their time in educating themselves. It takes a lot of work to find the best professionals, but finding the very best accountants, RE attorneys, appraiser, realtors, home inspectors, title companies, et al is invaluable. It’s a never ending process. Once you find them pick their brains. Follow Ups: Re: Underestimating RE Kristine-CA 10:49 PM, 05/05/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : I suppose that underestimating the knowledge & experience is the ultimate answer. From the neophyte investor’s viewpoint I thought it was because they’ve bought one or two homes and have never had any problems with them, so therefore they concluded buying and selling RE is easy. Like nearly all investments, it sounds so easy in the abstract but doesn’t translate to reality. : If you exclude buyer’s overpaying for RE (non-title issue), then I suspect a rather minute percentage of SFR transactions engender problems. It would be interesting what ALTA records indicate the percent of SFR title insurance claims. I forget the exact percentage, but I’ve read that forged signatures have ballooned in the past decade or so. ALTA history wouldn’t include homeowners who never submitted claims e.g., those that paid cash for SFR where title insurance wasn’t required or those who financed but decide to forgo the title insurance to save $$. Big mistake! : When you do come across problems, they’re whoppers. I come across one about every year or so. Encroachment is a big problem and professional liability of builders, surveyors, attorneys is quite often an issue. I'm surprised at the lack of thoroughness of many general practicing attorneys. From my experience if the owner can hold their cost of curing to four figures, they lucky. I’ve seen several in the $25-$50,000 range and heard of higher costs to cure problems. I’m sure title insurance attorneys could write a book on the title issues that they’ve seen. This doesn’t include the war stories of investors buying junior liens, where they thought that they were buying superior liens. : You bring up a good point about independent thinking. One of the valuable lessons that you can teach your kids is to distain the conventional wisdom. : Investors will educate themselves in time, but it takes hundreds of transactions and you’ll never know everything. I’d recommend investors investing 25% of their time in educating themselves. It takes a lot of work to find the best professionals, but finding the very best accountants, RE attorneys, appraiser, realtors, home inspectors, title companies, et al is invaluable. It’s a never ending process. Once you find them pick their brains. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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