Want to get into real estate and achieve that financial goal that you’re shooting? Then you’re on one of the best vehicles to achieve financial freedom. Countless millionaires as have always proved Real Estate: The source of their riches or where they park they riches.
Although that its true that there are many millionaires walking that are grateful to the investment vehicle called Real Estate, but don’t think that you can get away rich without learning anything. Investing in real estate is just like any other type of investment, do your research to avoid mistakes.
Here are the 3 common pitfalls when investing in real estate.
I. Don’t jump on the first house you see.
While the saying is very true “You don’t have to get it right, you just have to get it going” but don’t be too quickly to jump on the first house you see because you just want to get started. Some of this is due to over excitement, some due to laziness (not wanting to look any more) and some due to fear - that there won't be other deals. There are always deals to be made in the real estate market. It’s the same thing with shopping. Look around and compare until you find that what you’re looking for at a low price.
II. Don’t pay a dime more than you have to.
The best tip anyone that gave me when it comes to investing is “You make money when you buy, not when you sell”. This means that you buy real estate at lower price than the market average. Real estate investing is not like purchasing a home to live in. It is strictly a business transaction. Don't make the mistake of offering more than the numbers say will work just because you really like the house. This also means that instead of wanting to pay more you ought to be thinking of how you can get it cheaper.
III. Not doing your homework on property inspection.
Investment schools call this “due diligence”. You might found a cheap property and you could be thinking of “Jackpot”. But mind you, few properties are cheap for a reason - they need a lot of work. You need to have a thorough inspection done on the property so there are no surprises when you start to work on it. Every day that you are having to add to your timeline to fix items is a day that you are losing money. Doing also due diligence on property inspection might uncover some unpleasant things about the property. Then you can use that information as a negotiation chip to get the property for a lower price.
Although its true that you will learn by your mistakes. But its wise that you learn from the mistake of others. Along the way of your real estate investment road there are always be mistakes. At least you learn in advance and avoid them and make mistakes in other areas.