Real estate is a thriving business, that is why I encourage my surroundings to strike out and invest. However, investing in real estate usually involves large amounts of money, and shouldn’t be done lightly. Eleonor Roosevelt once said “Learn from the mistakes of others. You can’t live long enough to make them all yourself.” This is why I am making this article available, so that it will expose those minute details that you might probably miss if left uninformed. These points were not just gotten from hearsay, but from my personal experience, and from the countless number of investors I have worked with.
Here are the 10 mistakes to avoid when investing in real estate:
10. Lack of Research
I strongly tell my clients to get every minute detail as regards to the property in question, have a list of the possible things that could go wrong and also make a list of the features you love to see in that property. You can even tell the person you are buying to make a list of all the items that are in perfect condition and you inspect and go over those items together. This will shock you because there will be things your mind won’t go to when you see that list. This will help you get the right price of the asset. You bet, this will save you from some unexpected losses and extra cost.
It is always an emotional thing when you are buying your own house, the feeling of being in charge can be overwhelming I have been there (and I overlooked some certain things) but don’t allow these emotions becloud your sense of good judgment because after the deal is done and dusted the reality of what you have bought really set in and that’s when you might start counting your losses. Always stick with a logical plan and do your research properly.
8. Not working with an expert
Investing in real estate is not as easy as it seems, there are important factors you are most likely never going to see on your own, but working and seeking counsel from an expert will open and broaden your understanding and that will save lots of funds for you. Either by saving from losing your money on a bad deal or make you pay less for the right deal. The money spent in hiring one cannot be compared to the advantage and the advice they give. And you will learn how things work without getting to know from bad experience.
7. Real estate agents are there to make their own profits
This holds very true because that’s their job to make the best of every deal. So you have to be careful to understand and verify what they say, for instance, “cozy” means small, “as is” means it’s a fixer-upper. You have to emphasize to they explain everything in details. These agents are not totally on your side and not totally against you they are just there to strike a good deal for themselves.
6. Not seeing what you are paying for live
You can be cajoled into paying for a property online because of the pictures and video you see about the place. There’s a lot difference in actually walking through the property and seeing video or pictures of it. You will not be able to know how strong the property and other factors right. Get an inspector if you know you cannot get there to see it for yourself. I had experienced myself, more than once, when I was sent pictures of how nice the property is, but I insisted on seeing the place before I commit cash. Once getting there I checked the property and it was bad. Don’t believe in what you are seeing in the pictures!