Top Three Mistakes When Investing In Real Estate Now
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Posted On :
Apr-07-2011
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Article Word Count :
492
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The article discusses the common mistakes that investors make when they invest in the real estate business.
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Investing in Real Estate is a lot like a juggling act. First there’s the property to buy, then the sellers to look for, and then the external factors--including the demographics, law, economy, and politics.
With so many factors to consider, it can make your head spin in many directions if you’re not careful. Unfortunately, that’s sometimes the case with real estate investors. If you--or any wannabe real estate investor--wants to succeed in this business, you have to know what to watch out for. Here are some things to help you get started:
Mistake #1: Doing it alone.
Investing is like a long walk in the woods, and doing it alone can be a dark and scary time. Better to take that walk with a real estate agent, a knowledgeable lender, a closing attorney, a house inspector, and an appraiser while doing those long walks. If you are doing renovations, make sure to have a good designer, a handyman, some painters, contractors, landscape architects, and other service professionals on hand as well. Another thing to remember: you are only as good as your team, so make sure you have a good bunch of people to work with.
Mistake #2: Spending too much money on a property.
Buying and paying for a Property is one thing. Buying and paying a gargantuan amount is not. Sometimes, an investor gets so pumped up with a property they forget to use common sense.
Remember: a property sometimes takes around 90 to 120 days before they get leased or sold. Take into account that you have to pay mortgage, insurance, property taxes, association dues, and others expenses every month non-stop. Yes, I said non-stop. And we’re just getting started. What about the repair and renovation expenses you did? The architect and designer fees, the contractors you employed then? If you add all your expenses up, can you still see the light at the end of the tunnel? If you can only see the tunnel, then you’re going to lose a lot of cash in the end.
Mistake #3: Not learning the ropes.
So many investors jump in without getting an education. Whatever made them decide to venture into something they didn’t know anything about? They assumed that it was easy. It’s like committing investment suicide with your family’s financial life at stake. Before plunging into the real estate abyss, make sure you have your parachute on. This means you learn about real estate investing, the tactics and strategies, the expenses involved, marketing, sales, business management, and everything else connected to it. Don’t just jump in. Many wannabe investors died a natural death just by neglecting to put their parachute on, so to speak.
Buy Real estate can be a profitable and fulfilling investment if you do it correctly. Avoid these three mistakes so you can have a much better chance to succeed in this business.
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Article Source :
http://www.articleseen.com/Article_Top Three Mistakes When Investing In Real Estate Now_58514.aspx
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Author Resource :
Feel free to see more latest Real Estate trends in Seattle and San Jose California, so that you will be guided to have the Best Seattle Property Homes or Best San Jose Property Homes. Visit us at http://bloggericious.com/delicious/realestate/.
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Keywords :
real estate trends, real estate market guides,
Category :
Finance
:
Real Estate
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