Many property investors who are just starting out in the business should keep themselves aware of the most common mistakes that beginners make. By doing so, they increase their chances of making bigger profits in the industry. In this article, we will share with you some mistakes to avoid when starting out. Keep these tips in mind and make more money in property investment buying.
1.Getting too attached to the property You are not a homeowner. You are a business owner. When picking the right home, consider living in it. Is it cozy? Is the neighbourhood safe for you and your loved ones? If you can, it means that the property is rentable and that your buyers would want to live there as well.
2.Having no cash reserves Being short on cash will put the unnecessary pressure on you to make substandard repairs and make other poor decisions. When you have enough cash, acting rationally all the time is very easy.
3.Doing it on your own Most beginners want to manage their projects by themselves. This can usually cause them to spend more. Do not hesitate to seek professional assistance accountant, lender, a reputable real estate agent and, the like. When making an investment rental property, let your renters fill out an application form. Take time to check their credit, rental and employment history. This will allow you to examine their repaying capability.
4.Paying too much One very important thing that property investors should keep in mind is that being embarrassed to make a low-ball offer to a seller is a big no-no. What is unacceptable to you may be very acceptable to the seller. When signing a contract of sale, it is necessary that it has a subject to finance clause. It will give you a degree of protection since your lender will value the property before offering a new loan.
5.Forgetting to study your competition Why do the other properties in your neighbourhood never go vacant? It has been 3 months now but why does your home remain unrented? There are many reasons for this. It could be that the rental fees are lower than what you are offering. The other homes may be providing home features which you do not have. Study the strategies of your fellow property investors and find out what they have to give.
Property investment buying can be very profitable and rewarding. Remember to avoid these five common mistakes and you are sure to increase your chances of making more money in the industry. For more tips on real estate investing in general, go to www.REIWired.com.
1.Getting too attached to the property You are not a homeowner. You are a business owner. When picking the right home, consider living in it. Is it cozy? Is the neighbourhood safe for you and your loved ones? If you can, it means that the property is rentable and that your buyers would want to live there as well.
2.Having no cash reserves Being short on cash will put the unnecessary pressure on you to make substandard repairs and make other poor decisions. When you have enough cash, acting rationally all the time is very easy.
3.Doing it on your own Most beginners want to manage their projects by themselves. This can usually cause them to spend more. Do not hesitate to seek professional assistance accountant, lender, a reputable real estate agent and, the like. When making an investment rental property, let your renters fill out an application form. Take time to check their credit, rental and employment history. This will allow you to examine their repaying capability.
4.Paying too much One very important thing that property investors should keep in mind is that being embarrassed to make a low-ball offer to a seller is a big no-no. What is unacceptable to you may be very acceptable to the seller. When signing a contract of sale, it is necessary that it has a subject to finance clause. It will give you a degree of protection since your lender will value the property before offering a new loan.
5.Forgetting to study your competition Why do the other properties in your neighbourhood never go vacant? It has been 3 months now but why does your home remain unrented? There are many reasons for this. It could be that the rental fees are lower than what you are offering. The other homes may be providing home features which you do not have. Study the strategies of your fellow property investors and find out what they have to give.
Property investment buying can be very profitable and rewarding. Remember to avoid these five common mistakes and you are sure to increase your chances of making more money in the industry. For more tips on real estate investing in general, go to www.REIWired.com.