Whether you’re a brand-new real estate investor or you’re a seasoned pro, you might make some of the most common mistakes REIs make across the country.
So what are they?
The Most Common Mistakes REIs Make
Overestimating the Value of a House
Many investors—again, this sometimes applies to those who are new to the game and those who have been in a while—make the mistake of thinking a property is worth more than it actually is worth.
Typically, the easiest solution is to get a pair of appraisers to visit the home separately. Appraisers don’t know how much the lender wants to borrow, and they don’t have a vested interest in whether or not the buyer makes the purchase.
Failing to Allocate the Right Budgets in the Right Places
When you burn through your remodeling budget before you’ve even made it to the wall-painting phase, you’re in deep trouble. You’ll still need to come up with the cash to put the right finishes in the house, market it and tie up any loose ends.
Thinking That Real Estate Investing is a “Get Rich Quick” Thing
(This one usually only applies to new investors.)
Sure, on TV it looks like buying and flipping houses is a piece of cake… but any seasoned real estate investor can tell you that it takes a ton of work. It doesn’t happen overnight, either. You’ll be waiting on other professionals’ schedules, like the plumber, the roofer and everyone else whose help you need. (Face it; nobody’s a “jack of all trades.”)
Failing With Due Diligence
Yes, you have to move quickly when there’s a great investment on the horizon.
No, you can’t afford to skimp on research.
If you don’t pay attention to every detail of the deal, figure out the market conditions and determine your overall costs, you’re going to be hurting once the ink dries.
Your “gut feeling” isn’t sufficient here; save it for something a little less risky.
Do You Need Financing for an Investment in Atlanta?
If you need a hard money loan in Atlanta, Paces Funding is the place to call.
You can even apply for a hard money loan online if you’re ready to go now. We can provide funding quickly so you can pounce on a great deal when you see it.