6 Mistakes to Avoid in Real Estate Investment
Real estate investment prospects are more and more alluring as the housing market nears its post-recession state of being. However, like any investment, there is a right way to do things, and a wrong way. Read on to learn 6 things you should NOT do.
1. Going with the Flow
Not having a plan is a questionable way to start an investment career. Instead of planning as you go, make an outline of the kind of project you want to start, and then work toward those goals. The property you purchase should not be an impulse buy, but rather a manifestation of the plan you’ve written out.
2. Expecting Instant Riches
Real estate investment is about the long game. Self-appointed gurus who tout their “get-rich-quick” schemes have influenced the incorrect perception that you can make a lot of money right out of the gate. There is a lot of hard work, patience, and risk involved in real estate investment projects, but if you partner with an experienced development firm like New Vistas Corporation, you improve your prospects considerably.
3. Going it Alone
Investing in property means that you have to build relationships with other professionals in the industry. You’ll want form a solid foundation with at least one real estate agent, appraiser, home inspector, closing attorney, and lender. They each have insight into how to facilitate different parts of the buying and selling process. You’ll also want to have a maintenance team of plumbers, gardeners, painters, etc. to fix up any properties you purchase. Doing everything is too overwhelming. You’ll be more efficient if you work with others. New Vistas Corporation can help you with every aspect of property management—from development to regular maintenance and filling vacancies.
4. Spending Too Much
This one doesn’t need too much explanation: don’t overspend on the properties. There’s only so much money you can make on any property. Get your math right before you write a check.
5. Lack of Education
You’ll be at a serious disadvantage if you don’t take the time to learn about the industry you are planning to enter. Read a few books, go to a meeting with the local chapter of the National Real Estate Investors Association, and reach out to others who have a successful career in real estate investment. Even if you have good natural instincts, they must be supported by solid knowledge of real estate.
6. Lack of Research
Before purchasing a home, do your homework. Understand the climate of the local housing market. Calculate the costs you’ll put in fixing up an older home before you buy it. Not every property will appreciate. It’s a rookie mistake to assume you can turn a profit on any home you purchase.
New Vistas Corporation
At the core of New Vistas Corporation’s services is development. We can help you avoid all the pitfalls listed above. We develop projects from ground up, complete major re-adaptive uses and rehabilitate properties. In every development project, New Vistas Corporation plans each implementation by balancing the cost with market and timing considerations. This is how we’ve been able to ensure success and complete over $80 million of development projects in the past 10 years. Visit our homepage to learn more.