Avoid These Real Estate Investment Mistakes

By
Real Estate Sales Representative with DIR-USA.com

Wholesale Houses - Pinnacle Property Solutions: Seasoned investors have become seasoned through their experiences and mistakes. Paying close attention to what they are able to tell you about investing is smart. They know the pitfalls that can trip you up and stop you from making a profit, which is the whole point of real estate investment.

Avoid These Real Estate Investment MistakesFirst, be very careful about thinking you know what you are doing. Constant research must be done where the market is concerned. Each and every property you look at should get your full attention. Study the particular circumstances of the house for sale that you are considering. Don’t buy until you have all of the facts and have done appropriate calculations.

The price should be based on your thorough research of the particular property. Calculate the price you should pay that will allow for you to make a profit either today or in the future. A common error of those new to the business is to pay too much for the property, cutting yourself out of the profit before you even begin the process.

Have a good system in place. You must manage your business like a business. Keep good track of what expenditures and income you receive from each property. Having a separate account for each will help you to keep the books straight. You’ll know which rental property is profitable and which is costing you more than it’s worth. Poor bookkeeping brings down small businesses and the real estate investment business is no different.

Create a plan for your investments and stand by it. Make long term and short term goals so you can refer to the plan when you consider a purchase. The investments you make should fit within the scope of your plan. Decide how many properties you want to own and what your time line will be for acquiring them.

Be sure that you take your time when you first begin. A very common mistake is to buy too much property before you are ready. When you first begin investing, especially, buy a property and work it to see where it takes you. When you are comfortable with that property, buy another, but only when your resources are adequately replenished and you know you’re on the right track. Put money back into your investments to keep them sound and in good repair. Keep up your property taxes, and learn all you can as you go along.

 

Avoid These Real Estate Investment MistakesEvery home buyer has their unique situation and we have the expertise to come up with creative solutions to fit your situation and get you into the home of your dreams.

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We’re building a cohesive real estate network that provides Buyers and Investors alike, a community platform to find great wholesale real estate deals continuously. We do the research, we do the negotiations and we work with our clients to deliver exceptional real estate deals while building relationships.

As the current managers of the local REIA; Greater Fresno Real Estate Investment Network, we work with all levels of investors…novice to experienced. We provide our membership with networking opportunities, educational, strategic and marketing resources from industry professionals. View our California Wholesale Website

We Buy and Sell Wholesale Real Estate in the Following Areas of California: Central California, Central Valley, San Joaquin Valley, Fresno, Clovis, Madera, Merced, Kingsburg, Selma, Reedley, Coarsegold, Chowchilla, Sanger, Hanford, Kerman, Lindsay, Livingston, Lemoore, Squaw Valley, Strathmore, Tulare, Visalia

 

 

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Comments (1)

Justin Ruzicka
Synergy Property Group - Fort Myers, FL

great article, i completely agree you need to do you research, then more research, then check your numbers, then have your child, sister, friend, business partner recheck everything.  Making a mistake is easy in real estate investing.  Here is another good article on real estate investments, http://wp.me/p1JYQZ-c

Aug 10, 2011 04:12 AM