7 Mistakes Investors Make

Posted on March 10, 2014 by

There is money to be made in real estate, but you need to think about real estate investing as the business it is. Allow me to share some common mistakes that beginning and even seasoned investors should avoid.

For those of you connected to REIAComps, the control and feeling of confidence you have over your deals is priceless. Using REIAComps to investigate the value of houses as they come to market, against the recent sold comparables, will provide you a solid position to “make your profit when you buy”.

  1. Getting emotionally involved. This is the biggest and most common mistake beginning investors make. Emotions and business do not mix well.
  2. Paying too much. To make money investing, you have to find a good deal. Look for properties that need a little fixing up. Your goal is to find a distressed property that you can purchase at 60- 70 percent of other sold comparables. REIAComps makes that part of your investing business much easier.
  3. Ignoring schools. Good schools attract good renters. Conversely, only the most desperate renters are willing to subject their children to failing schools.
  4. Buying a low-priced home in a bad neighborhood. Property that is situated among vacant or foreclosed homes will not be enticing to future renters. Before you buy, use the Support Desk @ REIAComps to make sure the neighborhood is one renters will want to live in.
  5. Putting too much money down. This is not your home; it is your investment. As such, you should choose a property that will bring enough rent to cover the mortgage on a small down payment. When you keep your funds liquid, they are available for needed repairs and/or upgrades.
  6. Remember to calculate taxes. Sometimes high property taxes mean that your rental property is in an area with great schools and other quality infrastructure. If your proposed rental property includes high property taxes, make sure that the area’s desirability compensates for the extra cost.
  7. Disregarding local trends. Check out the area’s employment opportunities. Find out about any scheduled future development. Proposed new condominiums and apartment complexes could indicate a growing community, which is good news. Weigh the pros and cons of local trends before you invest.

Take this priceless info regarding possible mistakes in real estate and turn some extra profit. Of course, use REIAComps to determine the best acquisition and ARV for every deal you look at. Don’t for one moment let someone tell you the value. Let REIAComps show you for yourself.

Mark JacksonMark Jackson is an appraiser, real estate investor and property valuation specialist who teaches others to get more out of their real estate investing business. In 1999, Mark founded an appraisal company and soon found his true gift was analyzing property values for real estate investors. Since 2000, has closed millions of dollars’ worth of his own domestic and international real estate transactions. Mark’s passions are: faith, family, golf and real estate.

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