We recently wrote about five mistakes new real estate investors should avoid, but there are more than five.
Here are five more big mistakes that new REIs should avoid at all costs (because really, they can cost you a lot).
5 Big Real Estate Mistakes for New Investors to Avoid
- Skipping over the research. Yes, as an investor, you need to move quickly when you find a great deal. However, you can’t afford to skip out on your due diligence. If you do, how do you know you are really getting a great deal?
- Forgetting to plan ahead. While you may have a decent understanding of the Atlanta real estate market, that doesn’t mean that it will be the same when you’re finished rehabbing your house. It also doesn’t mean that you’ll be able to find a buyer or renter quickly enough to cover you when your loan payment is due.
- Putting all your focus into one project. You need to keep one eye on the market for your next deal while you are working on a rehab. Otherwise, you run the risk of missing great properties and missing out on opportunities for growth.
- Putting all your eggs in one basket. Unlike focusing on just one project, putting all your eggs in one basket means that you don’t have a backup plan. What if you can’t sell the home, or what if you can’t find a renter? You need to have a plan in place; think of it as an exit strategy.
- Underestimating the true cost of doing business. A good rule of thumb is to multiply the amount of time and money you estimate spending on the rehab by two. It’s important that you do this before you purchase a property. It helps “pad” your deal in case things go wrong. If you will still make money after doubling your estimates, then you are probably getting a good deal.
Do You Need a Hard Money Loan in Atlanta?
If you’re ready to invest in real estate and all you need is the funding, we can help. We specialize in hard money loans in Atlanta and the surrounding suburbs.
Call us at 404-814-1644 or contact us online. We can help you get the money you need to make a great investment.