Real Estate Investing RED FLAGS You MUST Avoid (LAWSUIT)

There are a few real estate investing red flags that an investor should ALWAYS look out for. If you don’t, you could end up in the same situation as David Pere, who just finished off a four-year lawsuit after a seller tried to get rid of a deal that wasn’t even worth the dough. But David wasn’t a rookie when this happened. This was David’s third deal after having multiple units under his belt. And even though he was able to walk away from the lawsuit, the downsides, years of stress, and wasted opportunity is what he wants to make sure you DON’T repeat.

This deal didn’t look fishy at the start, but as soon as closing came, difficulties started to crawl out of every nook and cranny of this property. Made-up leases? David’s got them! Weirdly intertwined relationships between sellers and property managers? It’s there too! Repairs that never got made? You bet! And this isn’t even the worst of the deal gone wrong. The story gets even more unbelievable, fraudulent, and downright confusing as David spills the tea.

But this isn’t a pity party. All while this lawsuit was happening, David has been scaling his rental property portfolio, reaching financial freedom, and still doing the best he could to build wealth. This story is NOT meant to scare you off from investing but to show you that any deal, no matter how bad it gets, can be a learning lesson that allows you to reach your goals even faster!

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Case Notes:
https://www.courts.mo.gov/casenet/cases/header.do?inputVO.caseNumber=SD37745&inputVO.courtId=SMPDB0001_SAP
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The 6 Best Ways to Minimize Your Chances of a Lawsuit:
https://www.biggerpockets.com/blog/2015-11-24-landlord-minimize-chances-lawsuit?utm_source=youtube&utm_medium=description&utm_campaign=none
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3 Strategies for Using a Lease Option to Invest in Real Estate Creatively:
https://www.biggerpockets.com/blog/lease-option-invest-creatively?utm_source=youtube&utm_medium=description&utm_campaign=none
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Investing in Mixed Use Commercial Property:
https://www.biggerpockets.com/blog/2008-10-02-investing-in-mixed-use-commercial-property?utm_source=youtube&utm_medium=description&utm_campaign=none
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Grab David’s Book (For FREE!):
https://thebestpodcastguest.com/
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Connect with David:
BiggerPockets: https://www.biggerpockets.com/users/usmc3140?utm_source=youtube&utm_medium=description&utm_campaign=none
Instagram: @frommilitarytomillionaire or https://www.instagram.com/frommilitarytomillionaire/
Website: https://www.frommilitarytomillionaire.com/
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Connect with Rob (Robuilt) on YouTube, Instagram, TikTok, and Twitter:
YouTube: https://www.youtube.com/c/Robuilt
Instagram: https://www.instagram.com/robuilt/
TikTok: https://www.tiktok.com/@robuilto
Twitter: https://www.twitter.com/robuiltchannel
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Connect with David and Rob on BiggerPockets:
David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none
Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow David and BiggerPockets on Instagram:
@davidgreene24 or https://www.instagram.com/davidgreene24/
@biggerpockets or https://www.instagram.com/biggerpockets/

Episode #734

Show notes at: https://www.biggerpockets.com/blog/real-estate-734?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
04:49 Quick Tip
05:31 Welcome David The Military Millionaire!
08:19 A BIG Property for Sale
15:21 Analyzing the Deal
26:21 The "Lease Option"
28:57 Property Management Mistakes
32:52 Cracks Start to Form
45:01 Going to Court
46:29 Lessons Learned
52:13 Results of the Lawsuit
57:09 Grab David's Book!