Mistakes Made While Investing In Real Estate

Here we are discussing some common mistakes made while investing in real estate. One should always try to avoid them. These are described as below:

  • Believing the seller or real estate agent on expense items.

Those expense numbers generally did not include vital items such as maintenance and legal expense. For every expense they state, make them prove it and then make sure you are including legal, maintenance, replacement reserves, vacancy and several others. Remember the seller is just looking to sell their property in the best and most of the agents just have no clue and just present what the seller tells them.

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  • Believing the seller on all stated income items can be disastrous.

Getting proof that all tenants are up to date as it is stated on the operating statement. If they are not get a rent credit in the form of money at closing. You may have a look at http://freedommentorreviews.com/ in case you want to invest in real estate properties.

  • Not using a Realtor that specializes in investment property.

You do not need to use a Realtor to find great deals, however if you are new, you may use a Realtor that is not only specialized in investment property but is also a real estate investor. Realtors help people to find good investment property. While investing in properties, make sure you are using someone who is first a real estate investor and then a Realtor.

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  • Call your local police department or ask neighbours about the property.

This is something that should be on the priority list. You should always inquire about the property that you are going to buy before purchasing it so that, you may not face any problem afterwards.

  • Not turning vacant units quick enough.

If you do not have enough time to have the unit “make ready” in a maximum of two weeks then I suggest you hire the work out. It may cost a little bit more however will save you time. Time really is money.

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