Are you planning to invest in the real estate properties? It’s merely a great industry to hop in having so much scope of success if done strategically. But for new investors. Here’s are a few mistakes they must avoid. So let’s dive in:
Not Having a Team
This is a very collaborative business and going out alone won’t work. It’s imperative for the people to be in more communication with the other investors, contractors, lawyers and more title companies. For sure, nobody is forcing you to just deal with the first one you go to. Make sure to build your team.
You need to get all these people lined up as far as whoever you’ll be dealing with. Befriend them, have lunch with them, get to know them. This way, you don’t have to wait until the time when you need them and then call as a stranger and trying to do business with them.
Start building your team immediately because it’s essential to have several people that you’re in constant contact with. So just make sure to have multiple contractors, Title Company, insurance agent, lawyer whoever you might need to get all the stuff done ahead of time.
Not Getting Multiple Estimates
Many new investors share their stories like how much they paid for something or how they got ripped off. Frankly, most of them usually end up overpaying. Therefore, it’s essential to get 3-4 estimates. It’s free to get estimates, so you don’t even have to pay for an estimate.
When it comes to the amount that has to be paid for a particular property, don’t take a single person’s word for it. It’s imperative to get multiple estimates especially if you’re going to be doing a massive renovation. Because when you have multiple estimates, it gets easier for you to compare keeping in mind the market value. In short, your chances of success increase tremendously.
Not Having a Value for Your Own Time
This is quite annoying when an investor says that “I’m not going to hire a painter because it will cost a huge amount and I know I can do this myself.” This is great, but now you are not putting a value on your time.
For sure, you will save a huge amount but not hire and working on it yourself that would take more time than an expert would have done it in. Ironically, you won’t be a real estate investor but a painter now because you’re doing what a painter would have done for you. Just keep in mind, you’re earning whosoever you’re replacing.
That’s great if you want to be a painter but, obviously, that’s not what you invested in a real estate for. Therefore, just be the real estate investor, pay the other people and let them do what it is that they do.
Not Starting Until Everything’s Perfect
Honestly, it’s a huge one! Just ask a person regarding investment like “what are you up to” and he’ll be like “well, m waiting for this to get lined up and so”. Some are like “I’m waiting till my company is set up, etc.”
Just don’t worry about it. Keep in mind; you have nothing to lose if you have nothing. So don’t complicate yourself and end up losing the opportunities. If you get a deal do business, don’t say “I’m not doing business because my company is not set up yet or my business cards didn’t come in”. If you know how to do it, don’t just wait for the formalities. Get out there and do the business don’t wait until everything is perfect because it’s never going always to be perfect.
There’s a great saying, “done is better than good”. So just get it done and then worry about making everything perfect and getting everything right. But right now, get doing it and don’t wait till everything’s perfect to buy off plan properties.
Do you want to know about the top mistakes that new real estate investors make and how you can avoid them? Just check out the article now.