This article comes from https://ladderkerala.com/ and it talks about the common mistakes investors make. Let' face I have mentioned many times, but I like to put other articles up that also bring up the point.
Being an investor myself I have made some mistakes that will not be repeated. These tidbits are also good for home buyers also. Let's face it you buy a home and sale it later you want to make money. Let's look at some of the mistakes this study brings up.
" Lack of documented strategy
Not having a defined goal or strategy to analyse the cash flow projections and budget before investing will lead the deal to be a failure. Property purchase decision should be based on the requirement, expected future benefits, income, risk profile and experience."
The key in this paragraph is experience , or having professionals that have a resume and manage clients portfolios. I love to show off all the real estate we purchased for our clients and the income that they are generating. We help our clients look at the future of an areas and the quality of tenants.
"Avoiding cheap purchase
Many tend to avoid purchasing properties which seem to be economical in the market deciding that a cheap price tag comes with an unworthy label. However, the purchase decision should be made considering the property as an asset and the investor should remember that making a right investment in right location is important.'
This seems to be the hardest of all to explain to clients. The saying is after all location, location, location. That is really the big difference maker in having a nice cash flowing asset that also generates a nice equity return.
"5. Lack of professional help
Consulting an amateur for all the processes and transactions in property purchase will lead to a poor investment deal which affects the future appreciation of the property. An expert who is well-versed about the real estate market and also has a good knowledge about the related documentation should be employed to make the investment worthwhile"
This is crucial to any investors success, you need to have people that know the market and look at it daily. I was with an investor who had called me and had some issues with their properties. Their stress level was through the roof and they were also frustrated with the amateur that where dealing with. They wished that their homes where with a professional.
There are so many amateurs in the market grabbing at your money and telling you how great their homes are. You need to be careful. Look at their body of work and see what kind of professionalism they are showing you. Information is everything in when your buying real estate.
I just updated one of our videos on our recent income properties. Take a look and call me
216-703-5740 in the business since 1985 and 1000's of transactions. Not the biggest, but one of the best. EXP Realty Ohio
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