Real estate investing can be hard to navigate, especially if you don’t know where to get started. Property investing is a lot different than just buying a home. I like to invest here in San Diego, but I’ve had my fair share of challenges in the past. I want to help you avoid these same issues, especially if you’re a first-time investor. Here are the seven mistakes that could really ruin your investment:
1. Not planning. You have to write out a plan. Having no plan is essentially a plan to fail. Real estate investing is expensive, and you may end up paying even more into money pitfalls if you don’t do proper research and planning beforehand. Think about maintenance, upkeep, and other hidden costs that come with purchasing a property.
2. Not researching the market. Each home and area is different, and you need to know about details such as zoning laws, insurance requirements, etc. You need to know the market value of your particular investment, too.
3. Hiring the wrong people.
4. Having a get-rich-quick mentality.
5. Spending too much upfront. A fixer-upper may seem like a good deal, but there can be hidden costs that will end up sinking you.
6. Not planning for expenses. In addition to any repairs or improvements that need to be made, there are also things such as landscaping, routine maintenance, and termite mitigation that may pop up. Jumping in without an expense plan could end up costing you.
7. Forgetting plan B. While everyone wants their real estate investment to be successful right away, you also need to have an exit strategy in case it’s not. You have to have an exit strategy before considering an investment to ensure you come out on top.
If you have more questions for me about investing in real estate or anything else, don’t hesitate to reach out via phone or email. I would love to hear from you and help you come out on top in the real estate market.