This article comes from http://www.bankrate.com/ by Pat Curry and it talks about some of the mistakes you can make when looking to purchase when looking to buy income real estate. I wanted to go through a few of the more important ones.
"Bankrate spoke with established, full-time real estate investors and with professionals, such as bankers, to identify the types of traps into which real estate investors most often fall."
1. Ducking due diligence: This means you really need to look at the company and the real estate they may be helping you purchase. Look at the all the amenities that are in that area. It's like a sniff test see if it smells right! Make sure it is a place you would live in yourself. It doesn't have to have the exact same thing you have, but you and your family needs are met in that area. For example if you like to dine a lot make sure the area you are looking in has that dining experience you would like.
2. Playing Lone Ranger: This is usually a grave mistake and can cost you a fortune. People think if you have seen a few scenes of a television show or read a certain book you will know what is going on. I just sold two homes that an investor tried to do on his own. They had almost $200,000 in these homes and we assisted them in selling those properties and basically breaking even. Get with a Realtor that knows the business and understands all aspects of the income real estate details.
3. Thinking you'll "get rich quick.": This is not true, but you can make great money with the right Realtor and companies. That alone will get you to your riches a lot faster than not using a Realtor that is in the income real estate business.
4. Misjudging cash flow: A lot of investors tend to buy the cheapest real estate available that shows 20%-30% returns. That looks great on paper, but usually is really wrong! Look at the quality of tenants and areas that your investing in. Have your Realtor get you a report on how much equity growth that area had last year? Nicer homes may not look as good as the cheap ones on paper. They usually get investors very consistent checks and equity growth to boot. Be careful when buying a home and know the areas appreciation for the last 12 months.
Those are a some of the mistakes I think are very important. I have done over 1000+ properties with investors and understand my markets. We also consistently get top rents for our areas. Call Brett 216-703-5740 EXP Realty Ohio and 602-363-6551 EXP Realty Arizona
This video has our recent Success's
.png)
.png)
0 Comments
Thank you