# Entrepreneur of the Week Shoshi and Hanoch Dombek

# Post 3

# Houston We have a problem

Good Morning,

Thank you so much for the support and likes, it is not obvious and really warms our hearts ????

We continue today with a few more points to address before purchasing a property.

There are a number of environmental factors and / or hazards that need to be checked and paid attention to when purchasing the property. It's not that people do not buy homes near an environmental hazard, but it does reduce the number of potential buyers and may affect the time and price of the sale / rent:

Flood Zone Property - The Federal Emergency Management Agency (FEMA) defines various areas in the United States as flood risk areas. Buyers will be afraid to buy a property that is in a risk area for two main reasons: 1. No one cares that his house is created and may be demolished (even if he has insurance) 2. The mortgage bank requires the purchase of special insurance in case of flooding, which increases the buyer's current expenses.

Our first flip was in one of the most sought after areas in Atlanta. After we had already renovated the house and put it up for sale, it became clear to us that the house was in a flooded area. And how did we find out? The buyers' agent called and said: Houston we have a problem, the house is in a flooded area and the buyers are worried. We were ashamed to admit we have no idea what she's talking about. A quick Google search and we fainted. We invested over $ 300 in this house and we were afraid that the money would go down the drain. Two days do not sleep at night. We explored the topographic area in great detail, and after many tests and measurements we were able to convince FEMA to change the definition of the house and remove it from the flood zone. We survived! The buyers who really liked the house were happy, and we too were back to breathing. Several years have passed since then but the feeling of the ground collapsing we remember very well. As a comprehensive recommendation, it is advisable to avoid buying a home in a flooded area. Although we were able to change the definition, it is not a simple move and requires obtaining accurate data and proof that other houses in the area under similar topographical conditions are defined outside the flood area.

Property close to an environmental hazard - For most of us it is clear that most people prefer to avoid buying a house near high voltage lines, oxidation basins, swamps and railway tracks, but problematic topography can also be a hazard such as a steep media slope to a house or a low house around it.

And another life story, we bought an unfinished house from a bankrupt contractor. The price of attractiveness blinded our eyes and we ignored a conspicuous warning sign. Main road on the border of the backyard. The house was large, prestigious, in an excellent neighborhood and the price… a lot of price… we could not stand it. As usually happens in such cases, we convinced ourselves that it would be okay. After all we will be renovated and it will be so amazing that the buyer will not even feel like he has a road in the backyard. Yes, these are the stories we tell ourselves to beautify reality. In practice we had to wait for our buyer for almost a year! The buyer's appraiser lowered the property to $ 16,000 because of the proximity to the road and we cut the price far beyond what we intended. So it is true that we bought cheaply and in the final calculation we made a profit and yet, it was a long year and a wrong business choice.

From our experience we need to add to the list of hazards a main road or a commercial center on the border of the backyard. A stream flowing in the yard is not only a ripple of water but can attest to groundwater under the house. We are not saying no absolutely great, and everything should be checked for the substance of the matter but do not ignore warning signs.

Crime neighborhood - it is not possible to check the crime rates in the area on the TRULIA website and other websites. In general, when you see pictures of houses with a gate gate on the front door and / or bars on replacements - there is a situation where you are in a problematic neighborhood.

Sex offenders in the neighborhood - it is not possible to check on designated sites whether a sex offender lives near the house. In the United States, public safety outweighs the right to privacy and there is transparency regarding the name of the offender and his place of residence.

Neglected neighborhoods - cars or scraps abandoned in the yards, weeds high and unkempt yards. Junk properties, for example, are located in neglected neighborhoods that invite a certain audience of buyers. Alternatively a neglected property in a well-kept area lowers the value of the houses near it and the buyer will be less or less enthusiastic about living near a scrap collector.

And one more thing to note, there are neighborhoods (subdivisions) where they HOA restricts or prohibits property rentals. Compared to that and you are purchasing a rental property in a neighborhood that has HOA it is very important to find out this point in advance.

Tomorrow is a Thursday post with some tips for renovation, why wait ????

implicit,

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