If this is your first time investing in real estate you are probably doing a lot of research, and that’s a good thing. You want to be well informed before jumping into the real estate market and building your portfolio. But, even experienced real estate investors can find themselves falling victim to these five deadly sins when it comes to real estate investing. Do yourself a favor and make sure you understand the entire transaction and process before making a mistake that could cost you money, time and energy.
#1. Don’t rush in until you have to.
In hot real estate markets knowing when to pull the trigger is key but it doesn’t mean that you should jump on the first home that sounds like a good idea, but then again, maybe you should. This is a tricky balance and it helps to have a dedicated and experienced real estate broker on your side throughout the process. Going at it alone means that you may not understand the micro markets of a particular location or its return on investment. Having a real estate agent that is very proficient in helping real estate investment buyers to help you make a better-informed decision, however, try not to rush into something for doing your research.
#2. Don’t assume.
You know what they say about assuming… I believe that here. But it’s important to not assume what you will need to do with the property once you have it. Look at the sellers disclosure form but don’t use that as the end all when it comes to defects and problems with the property. You will need to have a professional home inspector, preferably one that is well proficient in investment properties to look through the home and to give you their professional opinion. Don’t feel that you’ve put too much time into it that you can back out of the dead deal..
Read More: 5 Terrible Real Estate Investments
#3. Don’t do it alone.
Like I said a few paragraphs ago, doing this alone is really a perfect way to make mistakes. I don’t care if this is your first investment or your 10th investment, having someone that is very well-informed and experienced in the real estate market in which you are looking and can help investors find the property they want for the right cash flow or cash return is key. Get yourself a real estate broker that understands your needs, listens to what you really want both now and for your future, I can help you find the right property. Because we work with so many different agents around the area your goals become our goals. We listen to exactly what you want and make sure we find it so that you are comfortable with your purchase.
#4. Location, location, location.
You’ve heard this all before and it really is true. Never underestimate a property’s location potential. The property might be fantastic and a great price but if it’s in a bad location you’re not going to get the return you want. If you’re looking to rent out the property do some research on other rental properties in the area and if they can be rented quickly for top dollar. If you’re planning on flipping the property and reselling it, take a look at other properties in the area and how quickly they sell and if they sell for inflated prices.
Read More: Dos and Don’ts on Flipping Houses
#5. Stick to your budget.
Too many people get so involved in the real estate transactions that they throw their budget out the window. Keep a good head on your shoulders and try to stick to your budget. You will be thankful that you did in the end.
If you’re looking to invest in real estate throughout Northern Virginia, Maryland or the DC area we are the experts in investment properties, rentals, short sales and foreclosures. Give us a call and you could be matched with a real estate agent or broker that understands your needs and can help you get exactly what you want.