Wholesale marketplace for vacant land & cheap houses.

International Properties
Unique Development Opportunity in Butler Bay, St. Croix, United States Virgin Islands!

Do you believe that dreams come true? That there is paradise on the Earth? That there is a place where you can escape from cities and just enjoy nature how it i...

International Properties
Are you Interested in International Real Estate?

Take a look at what you can buy in Honduras and consider investing in a luxury vacation resort home.

International Properties

Unique Development Opportunity in Butler Bay, St. Croix, United States Virgin Islands!

Do you believe that dreams come true? That there is paradise on the Earth? That there is a place where you can escape from cities and just enjoy nature how it is?.

International Properties

Are you Interested in International Real Estate?

Take a look at what you can buy in Honduras and consider investing in a luxury vacation resort home.

International Properties

Retire Today at the "Enclave at The Palms" - one of the world's best place to live & play

Want to retire in Belize? The Enclave at The Palms is our current development of 20 homes, and as of today we have completed the first home and wanted to take the opportunity here...

Top 6 Mistakes to Avoid When Starting with Real Estate Investing

Articles

Published on Tuesday, April 25, 2017 by Land Century

Investing in real estate can deliver lucrative returns, but if you make the wrong moves, you may wind up losing money. A bad real estate investment can quickly turn into a money pit – and keep you from reaching your financial goals.

If you're considering a real estate investment, make sure that you avoid these six mistakes.

1. Not Doing Enough Research

If you're like most people, you probably spend a lot of time researching products before you buy them. Whether it's a television, a new phone or something as simple as an iron, you should compare reviews, features and prices to make an informed purchase.

But if you're buying real estate, you're going to have to do a little more research than that. How much research is needed and the type will depend on your plans for property. Are you flipping, renting, or buying for personal use?

Along with asking questions about the property, you'll also want to consider:

• The location
• The nearby area
• Whether the property is in a flood zone
• The value of the property – and its potential value
• Costs to repair the property (if necessary)
• Permit or zoning issues

Don't even consider putting in an offer until you've done all of your research.

2. Choosing a Bad Location

Location, location, location. When investing in real estate, you can't just pick any property out of a hat and hope for great returns. The property's location is essential.

Buying a home in the middle of nowhere will make it extremely difficult to find a tenant, and if you do, they may not be willing to pay what you're asking. And just because a property is in the city, that doesn't necessarily make it a good investment. It may be in a bad part of town, or an area with poor demand. Research each location to determine whether it's an up-and-coming area or complete wasteland.

It's better to buy a home in a great location with lousy financing or at a higher price because you'll have an easier time finding tenants – which may just save you from those other mistakes.

3. Playing the Lone Wolf

When making real estate investments, you don't have to wear every hat and take on every task. Many investors, especially beginners, want to take on everything themselves. They may underestimate how complicated the process is. They may think they know it all. Or, they may think they can save money by playing the lone wolf.

No one runs a successful business alone, so why would you want to even attempt to make real estate investments on your own (even if you do know everything)?

Rather than going it alone, tap into every resource that's available to you. Experts can help you get out of a bad deal, or give you a piece of advice that could save you thousands on a transaction. And once you do have your property up and running, you might consider hiring a property manager (if you can realistically afford it). A property manager will take care of collecting rent and scheduling maintenance, so you can focus on making new investments.

4. Getting Bad Financing

Think carefully about the type of financing you use to make your investments. Research all of your options, weigh the pros and cons, and consult with those experts you just befriended to get the best deal possible. The housing bubble may have burst, but that doesn't mean lenders will have your best interests in mind. It's just as important as ever to consider all of your financing options.

An interest-only or adjustable/variable loan may sound like a great thing, but you'll be paying the price when those rates finally go up. When securing your financing, make sure that you'll have the financial flexibility to make your payments, and have a back-up plan in case things go awry.

5. Not Budgeting Properly

During the research phase, you should have calculated the cost of repairs to bring the property up to standard. But it's rare for renovations to come in at budget or below budget. Make sure that you budget for unexpected costs, and budget for the entire investment properly.

It's easy to underestimate the cost of a real estate investment because there are so many variables. Repairs aside, you'll also need to factor in your expected rental income as well as recurring costs, such as maintenance, mortgage, taxes, insurance, etc.

Overestimating your rental income or underestimating your recurring costs can cause you significant financial hardship down the road. Make sure your numbers are accurate and realistic before making any final decisions.

6. Not Vetting Your Contractors

If you're investing in property that needs work, finding reliable, trustworthy contractors is key. I know what you're thinking: Do they even exist?

Contractors get a bad reputation, but the truth is that there are professionals who take pride in what they do, show up on time, and get done on time (or within a reasonable time). So, how do you find these contractors? A good place to start is with other investors. Find out who they used, and ask about their experience.

With this strategy, you'll learn about the good guys and the bad guys. You'll know pretty quickly who not to hire. Along with asking other investors for recommendations, you can also check reviews of local professionals. Also, check to make sure any professional you hire is properly licensed and insured.

There's no surefire way to avoid bad contractors, and you may wind up making a few expensive mistakes along the way (that's par for the course). But doing your due diligence will at least minimize the risk of hiring a nightmare contractor that sends your budget and timeline off on a runaway train.

Real estate can be a smart investment – everyone needs it. But just like with any other investment, it's important to do your due diligence, budget properly, find a great location and hire reliable contractors. Avoid these mistakes, and you'll be well on your way to seeing the returns you hoped for.
Share this Article
Great development opportunity in The Enclave at The Palms, Northern Belize!

The Enclave at The Palms is a residential subdivision located in the Corozal Province in Northern Belize. This part of the country is very popular with expats, and The Enclave is l...

Featured Listings

10.15 Acres
Blanca, CO
40 Acres
Model, CO
1995 Sq.Ft.
Corning, CA
5 Acres
San Luis, CO
0.75 Acres
Lehigh Acres, FL
1 Acre
Willcox, AZ
0.3 Acres
Shelter Cove, CA
0.3 Acres
Shelter Cove, CA
1.68 Acres
Sanders, AZ
1.05 Acres
Concho, AZ
0.23 Acres
Coldspring, TX
Be Smart, Live Well in North Port, Florida! Great opportunity!

North Port, Florida, is the place you have been waiting for. One of biggest city in Sarasota County, North Port still feels more like a small town and people hope to keep it that w...

120 acres for sale in beautiful Sierra Blanca, TX

Have you ever imagine yourself in the role of Texas cowboy in popular western movie? Where is just you, desert and wild nature? Or you were dreaming of build your own big rancho wi...

Featured Profiles

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

Harris Investments, LLC

Verified Wholesaler

BuildFortune, LLC

Unique Development Opportunity in Butler Bay, St. Croix, United States Virgin Islands!

Do you believe that dreams come true? That there is paradise on the Earth? That there is a place where you can escape from cities and just enjoy nature how it is?One of this places...

Beautiful Acreage with Farm House for Sale in Corning, CA

This amazing and commodious property is located in Corning, CA, well-known "Olive Capital of the World", can become your own paradise in California. Corning is a well-situated thor...

SHELTER COVE, CALIFORNIA - THE LOST COAST ON PACIFIC OCEAN IN NORTHERN CALIFORNIA

Shelter Cove is a quiet and beautiful beach community in Northern California, with one of the world's very few exclusive black sand beaches. Properties are not far from the ocean...

Are you Interested in International Real Estate?

Calm Waters Resort – Honduras:In beautiful Honduras, the newly launched Calm Waters Resort project is currently under construction, and are offering several of the resort’s vil...

Retire Today at the "Enclave at The Palms" - one of the world's best place to live & play

5 Reasons Why Moving to Belize is Awesome!The Atmosphere. There is something magical about Belize. All your cares and stresses melt away and you enjoy the laid back atmosphere and...

What are Real Estate Investment Trusts and How Do They Work?

When it comes to real estate investments, you'll see a lot of people talking about REITs, or real estate investment trusts. Some people call them "real estate investment stock."The...

Featured Listings

10.15 Acres
Blanca, CO
40 Acres
Model, CO
1995 Sq.Ft.
Corning, CA
5 Acres
San Luis, CO
0.75 Acres
Lehigh Acres, FL
1 Acre
Willcox, AZ
0.3 Acres
Shelter Cove, CA
0.3 Acres
Shelter Cove, CA
1.68 Acres
Sanders, AZ
1.05 Acres
Concho, AZ
0.23 Acres
Coldspring, TX
Business Ideas for Vacant Land - How to Create Income Producing Assets

Vacant land can become an income producing asset. Land is valuable, and while land may be most valuable when a structure is built on it, this doesn't mean it can start producing in...

How Blockchain Could Change the Real Estate Industry

You've heard of cryptocurrencies – unless you've been living under a rock – but you're not sure how they work. Bitcoin, the world's largest cryptocurrency, is run on what's cal...

Featured Profiles

Verified Wholesaler

Land Century, LLC

Verified Wholesaler

GreenBridge Holdings, LLC

Verified Wholesaler

Harris Investments, LLC

Verified Wholesaler

BuildFortune, LLC

What Does the Right of Refusal Mean in Real Estate?

The first right of refusal in real estate is a provision an agreement or lease that gives a potentially interested party the right to buy the property before the seller negotiates...

Avoid Being Scammed on Craigslist and eBay When Buying Property

Just about anything you can imagine can be bought and sold on eBay and Craigslist, from old toasters to vintage record collections, and yes, even property. While these sites have c...

How to Get into Commercial Real Estate Investing & What You Need to Know

When you think of real estate investing, commercial property is usually the first thing that comes to mind. After all, commercial development is where the money is at. As lucrative...

Flipping Houses or Rental Properties - Which Is More Profitable?

You're ready to invest in real estate, but you've hit a brick wall: you don't know whether to rent out your new property, or flip it for a quick profit. Flipping is tempting - it's...

California Areas for Land & Property Investments in Q1 - Q2 2018

Several cities in California topped the list for the hottest real estate markets in 2017. For those looking to invest in land and property in the state, these top cities are your b...