5 mistakes to avoid as a real estate investor by scott prephan
Post on 12-Apr-2017
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5 Mistakes to Avoid as a Real Estate Investor
1. Overpaying for a property.
If youre turning to real estate investment as a means to generate
wealth, the last thing that you want to do is overpay for your
investment properties. If youre unsure of the value of your
property or feel that you may have been misquoted, look for a second
opinion on costs and always be vigilant for mistakes in property
2. Not doing your homework.
The skill and acumen required to become a knowledgeable real
estate investor takes time to learn, and its not the kind of learning you can just pick up as you go. Prior to
making any financial decisions that could drastically impact your
future, educate yourself on the process and ensure that youre
well-versed in what needs to happen on your end by staying up- to-date with industry happenings.
3. Trying to do it all by yourself.
Its crucial to build relationships with all of the right people along your way; real estate agents and home inspectors are people you
want to get to know at the beginning to help assist you with
your purchase. Then, as you begin the renovation process, it will be
crucial that you form relationships with people working in
construction, maintenance, and remodeling companies as well as
the plumbers, contractors, roofers, and painters that they provide you
4. Being unrealistic about your cash flow.
Yes, if you invest in a rental property, youre going to have cash
flow from rent, but theres more that goes into it. If you own a rental
property, youre still responsible for making payments on it even
when the property is vacant. Youre also responsible for all of
the upkeep and maintenance work which can take a lot of your time,
and if you hire a property manager to look after the property, youre also going to be cutting into your
5. Setting unrealistic money &
Investing in real estate is not going to make you millions of dollars overnight, and if you walk into
investing with the mindset that it will, youre going to find yourself in a world of financial trouble. If you
want an investment thats going tomake you money without much
effort on your part, you may want to consider another avenue.
Investing in real estate requires a lot of work on the part of the
individual as well as an adequate understanding of industry