Real Estate investor Misconceptions – Not having a specific plan and just going with flow
Real estate investor misconceptions are important factors that are to be kept in mind. It’s a blunder if you are doing so because you must have idea of what type of properties you are going to buy in your business model plan and must follow the plan. Because buying is not the only deal we are making, we have to sell the property with our gains included. So planning should be the top priority and it should be done and analyzed before you actually start investing.
Quick gains and one will become rich
This type of wishful thinking is common with human nature but you are jumping in business, and many are there in market, whose infomercials will make real estate investment sound easy but in actual it is not so. There are many deceivers too in the market.
Real Estate investor Misconceptions- Doing it all alone
You will only succeed if you got the right team. For that you need to have one real estate agent, appraiser, home inspector, attorney and lender. This will be good for your deals and your prospective clients too says Don McClain.
Real Estate investor Misconceptions -Buy at lowest possible rate
Once you buy any property, that moment you know how much profit will this deal yield. If you buy it at high price less will be the gain.
Real Estate investor Misconceptions -Don’t skip homework
Before you put your family’s money on stake, just analyze yourself. You cannot become expert overnight. So, go to library and go through real estate investor association, local chapter. This will open your mind. Speakers at monthly meetings cover everything.
No proper check of the property
Professional real estate investor, researches about the property extensively before the deal and then finalizes. Newbie’s lack in research and they buy property, without it. Doors and floors do not substantiate their deal.
Real Estate investor Misconceptions -No idea of cash flow
Plan of cash flow should be made before like maintenance of the property is important and you need to pay cash for it.
What to do with property
Once you bought, selling is not the only option. You can rehab the house or rent it. If both these don’t work you can sell it to other investor and still make profit.
Real Estate investor Misconceptions -Lower your work load
There should be only one deal and you must focus on that. Rest of the deals should be after the first deal gets finalized.
Real Estate investor Misconceptions -Proper calculations of estimates
While rehab you must focus on locality and then invest accordingly. Estimated cost included in the actual cost, still yields profits in selling then one should go for it.
For any real estate related guidance do contact Don McClain EZ House Buyers