Sun, Jul 06, 2008
|
TCI Shopping
|
|
Featured TCI Properties |
|
Waterfront Cape
Nottingham, NH
|
| Price: $897,540 | | FMV: $1,000,000 | |
|
|
Top Mistakes Made By Residential Real Estate Investors
| | Monday, January 22, 2007 @ 08:01 AM EST
|  Printer Friendly Page
 Send this Story to a Friend |
Contributed by: dee copeland
dee copeland Properties
Read more archived articles about Managing
When I started investing years ago, as many new investors have experienced, I made costly mistakes. As I speak with other investors, they outline some of the same mistakes that I did. This is not the end-all, be-all list, but can help many beginning investors.
1. They didn't start investing soon enough. It's actually not difficult to buy rental properties or grow your wealth by investing in real estate. With a hot market like the one we have in Texas, every local person should be buying something. Once you learn how to invest, you will wish you started sooner, guaranteed.
2. Too "motivated" or eager to get started, so you overlook the basics. Investing is a process, so you will often just the first deal that comes along, rather than being patient enough to make sure it's the right move. There's a such thing as being too analytical, but it costs less money to be analytical than it does to lose your shirt on a bad deal.
3. Not understanding how to analyze a rental property or account for the costs. I made this mistake and so did another person. You have to verify the management and maintenance fees as well as rents. Sometimes, landlords can have hidden concessions that are not in lease, so you'll lose money on a property that looks great on the surface.
4. Working with contracts without someone on your side. This is a tough one. A general contractor is probably the #1 way to lose money, especially if they know that you are inexperienced. Whether you're a landlord or a rehabber, you'll need to use a service provider or general contractor and some point. Before you hire, talk to an experienced investor.
5. Not calculating enough cost when fixing up a property. This one is always made. At some point, 100% of investors will underestimate their repair costs. The question is.. by how much?
Word Cloud:
being move. general analyze investors, you're such working make started there's cost learn is.. probably beginning surface. years looks other maintenance they investor. like process, understanding rather calculating know shirt mistakes. mistakes local fees especially when well guaranteed. right landlord start contracts made. properties grow analytical, management just experienced inexperienced. it's "motivated" contractor investors many enough sooner, much? buying than underestimate end-all, speak have question sure first hidden verify concessions didn't repair experienced, ago, one. did. investing real deal. point, rents. landlords be-all point. tough person property overlook costly rental costs. this comes whether deal rehabber, estate side. without will talk investors. made does before analytical you'll estate. provider help wealth money, texas, less great invest, every property. account sometimes, thing with often started, lose lease, soon eager 100% service along, always difficult fixing wish costs should hire, residential some someone money market need something. same mistake patient outline another once list, basics. person. enough. actually
|
|
| |
Average Score: 1
Votes: 3
|
|
| "" | Login/Create an Account | 0 Comments |
|
| These comments are owned by the posters. We aren't responsible for their content nor endorse them.TCI Comment section - where you are the moderator!If you see an offensive post or advertisement, please use the "As Is" drop down menu to choose a topic rank, then click Moderate at the bottom. This in turn will allow registered users to view only the topics that are most relevant to the article and get rid of the advertisement spam and junk. |
|
|
