Common Real Estate Investing Mistakes
Although real estate may seem like a sure bet for anyone, many investors make the same few mistakes. Eliminate these errors from your investing activities, and you’ll be well on your way to accumulating the wealth you desire.
Avoid These Mistakes
1. Poor research. Most of us do a lot of research when making large purchases. In real estate, it is important to research all aspects of the investment, from the initial cost, estimates for rehab and repairs, and how this will affect the profit margin in the long run.
2. Inadequate financing. Real estate investors frequently like to wheel and deal, and their deals can have many moving parts. Balloon payments, interest-only payments, owner financing, subject-to, and many others are commonplace.
Getting a great price doesn’t always justify the deal if the financing is inadequate. Are you sure that you can unload the property or get other financing before that balloon payment comes due?
3. Trying to do everything yourself. Though every real estate investor attempts this at one time or another, you have little chance at success all by yourself. A great investor will have, at a minimum, a real estate agent, attorney, title company, inspector, handyman, and insurance agent – all on speed dial. Use your experts to your full advantage!
4. Paying too much. Real estate deals primarily sink or swim based on price. If you pay too much, not much can be done to rectify the situation.
Beginning investors are more likely to fudge the numbers to make a deal happen mentally. Do your research and your math and stick to your numbers.
5. Not estimating expenses accurately. Just like paying too much, many investors will look at repairs and think to themselves, “Everyone is saying it will take $21,000 to fix, but I’m sure I can get it done for $15,000.” What if it takes $25,000? Paying the right price for property hinges on being realistic about rehab expenses.
Be sure that you are accounting for all expenses. The costs of landscaping, lawn mowing, insurance, utilities, property taxes, and new appliances can add up in a hurry. Be realistic with your repair planning.
Real estate investing is a relatively simple business, but mistakes can create massive challenges in a hurry.
Even a seasoned investor makes mistakes. The best investors make them less often than everyone else. There are moneymaking opportunities in any housing market, so don’t let these mistakes slow you down!
If you want to find out more, reach out to us at https://www.LesliePurdy.com or text/call (321) 209-INFO(4636).
About Leslie Purdy, Real Estate ProfitabilityTM Author, Mentor and International Speaker
Leslie Purdy is a third-generation real estate investor with a lifetime of experience. She and her husband have actively been repairing, rehabbing, and working in real estate for more than 40 years. They are seasoned investors who have made it through all the ups and downs of the real estate market and grown their net worth exponentially.
If you want to find out more, reach out to us at http://www.LesliePurdy.com or call (321) 209-INFO (4636.