5 mistakes to avoid as a real estate investor by scott prephan

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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

    analysis.

  • 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

    access to.

  • 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

    cash flow.

  • 5. Setting unrealistic money &

    personal goals.

  • 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

    knowledge.