Are you thinking about getting started with investing money in real estate, but you’re concerned about losing money?
In this article, we will share several ways to avoid mistake which will result in losing money.
#1 – Not understanding the investment
The first way to lose money fast in real estate is not understanding what you’re investing in. To avoid this, you should connect with a great attorney and find a mentor, or someone who has invested in real estate before, that you can turn to with your questions when you’re getting started.
#2 – Believing It, without seeing It
A common factor for many people is losing money in real estate today by not taking the time to see the properties they are investing in. This is especially important when you’re just getting started. You should always drive out to the property (if it’s in your area) and verify what’s listed about the property on paper because sometimes a deal can be too good to be true.
#3 – Not spending money on the inspection
It doesn’t matter if you’re buying your first property, or tenth property, you should always spend money on the inspection because that inspection could point out problems that may cost you a ton of money to fix. Just make sure that your inspector is licensed, is part of an association, and represents your best interests, and isn’t working for the seller.
#4 – Trying to do everything yourself
Yes, you may be a contractor by trade, lawyer, or property manager but that doesn’t mean that you should do everything yourself when it comes to your property. You should always hire the services of a skilled professional to ensure that quality work is performed every time.
#5 – Confusing a distressed property with profits
Are you thinking about buying a fixer-upper property that you plan on renting out? Although these properties can present opportunity, the reality is that if there are multiple fixer-upper properties, short sales or foreclosures in the same area, you’re not really getting a great deal, you may be buying into a distressed area and it could be difficult for you to rent that property once you fix it up.
Contact Strategy Properties
Got questions about how to avoid losing money in real estate? Want to view invest properties for sale in the Detroit area? Contact us at (734) 224-5454 or connect with us online strategyproperties.com