The Fatal Mistakes that Will Kill Real Estate Profits

By admin, February 27, 2018

Investing in real estate is a sure thing, right? It’s really easy isn’t it Wrong and wrong again. Sure, if you are good at it, investing in real estate can be a very safe investment, but it is by no means a sure thing, and it can be pretty tough going if you aren’t prepared for it.

That being said, you shouldn’t be put off from such an investment because investing in property can often be the safest option. What you should do is avoid making the following fatal mistakes that will kill your real estate profits and make your life more difficult than it needs to be:

Not Casting a Wide Enough Net

The worst thing you can do when investing in real estate is not spending enough time looking at enough properties. If you’re too eager to get started and you just throw all of your money at the first promising property you find, you’ll probably end up with fewer returns and more problems that you would have if only you’d taken your time.

Choosing a Property Because You Love It

It might seem like buying a property because you love it is anything but a mistake and that might be true if you plan to live in it yourself, but if you’re buying it as an investment, you need to put your serious hat on and choose your property because it’s being sold at a good price, it’s in a neighborhood that’s up-and-coming, and you can actually make some money from it. Sure, if you love it, that’s a bonus, but it should never be the sole reason that you buy.

Thinking Your On Flip or Flop

Flip or Flop is undoubtedly entertaining TV, but if you think that your property investment project will be just like the ones on the show – you’ll buy at a ridiculously low price, renovate the building to an amazingly high standard in a ridiculously short period of time and sell it on for a ridiculous price, you’re in for some major disappointment. Although that kind of stuff can and does happen, it’s uncommon, and unless you’re a skilled investor with lots of construction skills and lots of time and money, your journey is likely to be a lot more slow and steady.

Not Using a Property Management Company

Property management from Opulent Real Estate Group takes all of the hard work out of your hands and ensures that you can find good tenants quickly and that any repairs or issues are solved quickly, usually with very little input for you. A lot of real estate investors think they can manage their portfolio by themselves to save a little money, but it soon becomes evident that they are out of their depth and things can go south quickly. Don’t let that be you and hire a property management company.

Not Doing Your Due-Diligence

It should go without saying, but you must do every check it is possible to do before you buy a property. If you don’t do that, you might be surprised (and not in a good way) by damp, bad neighbors, a new development that sees the value of your property plummet and so on!

Avoid these fatal mistakes and a decent real estate investment profit you are likely to make!