How to Avoid Real Estate Investing Mistakes That Kill Profits
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Loading... - Martisse Bertin
- 27 Jul 2022
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Investors are constantly flooded with advice about how to invest in real estate. The vast amount of that advice is about what you should be doing. Very little is about what not to do. A good businessperson understands both the good and the bad about their business. New investors need to understand both the upside and the potential downside of their real estate investing opportunities.
You don’t need to reinvent the wheel. Real estate investing is among the oldest professions. You can and should learn from those who came before you. You will make mistakes but make them your unique mistakes. That way there will be fewer mistakes to work through. Here is where you begin:
1. Not thinking outside your home market. It’s easy to become enamored with your hometown market because you are so familiar with it. It is critically important that you fully understand the market you are investing in. But it’s also important that you not be narrow-sighted. Research and explore other possible markets. That doesn’t mean jumping into the most promising market before you understand it. However, it does broaden your vision to identify possibly bigger gold nuggets that you can learn the details about.
2. Not having an exit strategy. A deal that appears to be a bargain at first glance isn’t worth a dime if you don’t know how you are going to make your profit. Remember that it’s a bargain for a reason. Investors are always looking for distressed properties but buying for dimes on the dollar will leave you with only dimes if you don’t have a solid plan to make the dollars. Read More...
