In order to be the best in what you do – real estate investing, it is important you know some of the mistakes or pitfalls you should avoid. If you are a beginner investor, this post will enlighten you on some of the mistakes you should avoid if you are to make headway in the real estate industry. These mistakes include the following:
• Underestimation of Repairs: If you don’t have knowledge of the costs of building materials and labor, then you have no business estimating repairs without professional guidance. In order not to make this mistake, get two or more building contractors to submit quotations for such repairs and with this, you will get an idea of what it would cost to put a potential property in good condition thereby, increasing its market value.
• Have Little Or No Knowledge of Market Numbers: This is another real estate investing mistake you should avoid, even as a beginner. All thanks to technology, finding out the supply curve of a given neighborhood can be achieved with just a few clicks of the mouse. You can also contact a broker to find out more about a given location you are not convinced of the supply curve.
• Preference of Low Price Over Experience: This particular mistake applies to making a choice of the contractor to use in effecting major or minor repairs on a property before putting it in the market. When you settle for low price over experience, you might end up with poorly done renovations, poorly written contract with lots of hidden clauses and charges. This is not the same when you transact with an experienced and reliable professional.
• Lack of Marketing Plan: With this real estate investing mistake, you get to learn the hard way that being a successful investor is not just about finding yummy deals through agents. Therefore, you need to device a reliable marketing plan that sees you reaching out to estate owners/managers, foreclosure agents and other sources that will lead you to potential sellers.
For you to make the most out of real estate investing, you should avoid the above listed mistakes. Being new in the business is not an excuse because now you know what you should not do if your aim is to be a notable figure in your chosen industry – real estate.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.