Whether you are a new investor, or an experienced veteran, it’s sometimes easy to get in over your head when you discover a new opportunity or property that seems too good to pass up. It’s important to consider all of the variables, and make sure you avoid putting your money in the wrong place.
When you have a “get rich quick” mentality, you’re likely to make an impulse buy. If you aren’t patient enough to plan out your purchases, it’s easy to ignore small details that can cost you big.
Overlooking unexpected costs
It’s important to plan for the worst. Always leave extra room in your budget and plan safe. There are always risks when dealing with real estate, and there could be problems with the building or property that the inspector didn’t catch.
Hiring the wrong people
Whether you are a landlord hiring a property manager, or a seller hiring a broker. Hiring experienced professionals that you can trust is key to your success. Hiring the wrong people, or butchering a job by doing it yourself with a YouTube video, could result in the loss of a big chunk of change.
Picking the Wrong Tenants
As an owner of a rental property, it’s often said that every day the property isn’t occupied is a day where money is lost. But landlords especially need to be careful of tenants who won’t take care of the property, which could seriously lower the overall value and derail your investment. Although you may be eager to fill your space, no tenant is better than the wrong tenant.