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Top Real Estate Investment Mistakes to Avoid in 2020

top real estate investment mistakes

Top Real Estate Investment Mistakes to Avoid in 2020

Many people want to invest in real estate because they think it's an easy way to make money. That isn't necessarily the case.

Top Real Estate Investment Mistakes to Avoid in 2020


#1: Not Doing Your Homework

#2: Not Finding The Right Property

#3 Failing To Get An Inspection

#4: Being An Absentee Owner

#5: Having Inadequate Insurance

#6: Not Charging Fair Rent

#7: Selecting Unreliable Tenants

#8: Not Getting The Right Help

If you want to have a successful investment portfolio, you need to ensure you are not making any of the top real estate investment mistakes.

You can avoid these mistakes and be a savvy investor by following these tips to get the positive cash flow and tax benefits you want from your real estate investment.

1. Before you make an investment, evaluate your financial situation.

Ask yourself if the timing is right. Don't just go with your gut. Learn the basics about cash flow, appreciation, and loan amortization. Work with a knowledgeable REALTOR® who is familiar with the market and can help you make sure you've got all your bases covered.

2. Do a thorough search to find the right investment property for you.

An experienced REALTOR® will help you find and buy the property you want, and work with you on all documentation, including rental and lease applications, title policies, purchase contracts etc.

3. Have a professional inspection before you buy.

Make sure there aren't any major problems - such as pests, leaky pipes, and mold. If there have been problems, make sure they've been properly addressed. You're investing your hard-earned money, so use sound business judgment.

4. Be a hands-on owner.

Visit the property often to ensure everything is going as expected. Talk to your tenants to get feedback on things that need repairs etc. It's less costly to take care of little problems before they become big problems. .

5. Have adequate insurance.

When you own property, you have potential for liability. Work with an insurance professional who will see that you are well covered.

6. Charge fair rent.

A skilled REALTOR® can help you determine the amount of rent that is reasonable for the condition of the house, its amenities and location. What you DON'T want to see is a vacant property.

7. Be selective about your tenants from the start.

Check all references, including previous landlords, payment history, employers, and credit history. Good renters will help you generate positive cash flow that you can use to reinvest back in the property payment and speed up the amortization schedule. This decreases your debt load and increases your equity.

8. Not having the right person help you.

You need more than just the typical real estate agent to find and close on the best properties. You will need an investor specialist.

By following these simple rules you can avoid the Top Real Estate Investment Mistakes  in 2020.

steven jackson

Steven Jackson

Steven is a seasoned professional in the real estate market. He has built a highly successful real estate business and is recognized as an expert in his field.

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